On 8 June 2016, ASIC released its fifth annual report for 2015 into the supervision of registered liquidators in Australia.

Luring readers in with a thrilling title of“ASIC regulation of registered liquidators: January to December 2015”, Report 479 summarises the work undertaken and the outcomes ASIC says it has achieved in its supervision of registered liquidators for the period of 1 January 2015 to 31 December 2015 as well as documenting ASIC’s work in providing guidance and education to registered liquidators.

In supervising registered liquidators, ASIC conducts inquiries and reports into alleged misconduct; enforces formal investigative and enforcement action; and conducts surveillance activities to supervise and regulate industry compliance.

The key outcomes noted in the report are:

1. A drop in reports of alleged misconduct by registered liquidators by 18.4% since 2013 (446 reports in 2013 to 364 reports in 2015);

2. That 72% of those reports of alleged misconduct resulted in educative outcomes for those making the reports.  That is, the person making the report (usually a creditor) was unhappy about a particular outcome or conduct,  but should have informed themselves (or obtained proper advice) before lodging a report with ASIC.  Previous years had a lower percentage of “educational outcomes” for complainants (61% in 2013 and 64% in 2014).

3. ASIC claims success in holding registered liquidators to account by commencing a whopping five formal investigations and two court inquiries; entering into four enforceable undertakings; and entered into seven negotiated resolutions.

4. ASIC asserts that “strong cross-government agency collaborations have successfully maintained the machinery in place to disrupt those involved in the facilitation of illegal phoenix activity”.

5. ASIC assessed over 700 applications to the Assetless Administration Fund, and approved 250 of those applications.

6. ASIC assisted liquidators obtain books and records in over 400 external administrations, and prosecuted over 350 directors for failing to assist registered liquidators.

7. Over 50 reviews were conducted by ASIC covering practitioner independence, competence and the minor issue of remuneration.

8. Over 280 reviews of matters in respect of notice publishing and lodgment non-compliance were addressed by ASIC.

The next thrilling installment in ASIC’s reports on liquidators is expected to cover the period of 1 January 2016 to 30 June 2017 in order to align the annual report with the financial year.

Pre-orders for the report will surely be available soon.

For more information, please contact us.