Monday 6 May 2013


ASIC regulation of registered liquidators: January to December 2012

This is all shit and propaganda from Asic and the IPAa.
ASIC uses discretion to fuck anyone over who complains about a liquidator.
The Insolvency Practitioners Association also protect corrupt  trustee's so as Skanky Robyn Erskine agrees   the IPA is at one with all regulators  that anyone who complains should also be fucked over!!!!!!!!!!
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ASIC has released its annual report detailing its supervision of registered liquidators during the 2012 year - Report 342 ASIC regulation of registered liquidators: January to December 2012.  
In an IPA media release on 1 May 2013, we welcomed the report and our President, Robyn Erskine, noted that the "IPA is at one with all regulators in its determination to ensure that those practitioners who break the rules are identified quickly, and dealt with accordingly....We are committed to ensure that high standards of professional conduct are maintained.  When standards are not met we take action against members and, where appropriate, refer their conduct to regulators for further action."
ASIC's media release noted the following key points from the report:
  • ASIC completed more than 200 reviews examining issues including practitioner independence, competence and remuneration.
  • There was a 10% increase in inadequate declarations relating to disclosure about independence. More than half of all declarations in 2012 were considered inadequate.
  • There were 19 registered liquidators subject to formal investigation or enforcement action at the end of 2012.
  • 69% of reports of alleged misconduct against registered liquidators resulted in educative outcomes for those making the report.
The report details the following supervision activities undertaken and outcomes achieved by ASIC during the reporting period:
  • initiated 96 and completed 95  transaction reviews - 8 were referred for formal investigation or enforcement action;
  • initiated 11 and completed  21 proactive practice reviews - 4 were referred for formal investigation or enforcement action;
  • initiated 18 and completed 13 newly implemented proactive transaction reviews - majority required further discussion in order to get a fuller understanding of what had occurred with the company and the action taken (or to be taken) by the liquidator;
  • completed and reported to the industry on ASIC's compliance project addressing financial reporting; and
  • commenced 13 and completed 5 formal investigations into registered liquidator conduct or initiated enforcement action - of those completed 1 resulted in a court application for an inquiry, 2 reached a negotiated resolution and 2 resulted in enforceable undertakings.
The report states that ASIC's Misconduct and Breach Reporting team received 437 inquiries and reports in 2012 (426 in 2011) and these matters were categorised as follows:
  • Conduct related (9%) - the information provided to ASIC suggested a serious breach of standards, which could be seen to be deliberate.
  • Procedural based (22%) - Although serious, the information provided to ASIC suggested the misconduct might have been inadvertent.
  • Educational (69%) - the information provided to ASIC suggested that the inquiry or report arose because of a lack of understanding of the issue by creditors (this category includes, but is not limited to, general inquiries, questions and complaints on commercial practice).
The 437 inquiries and reports of alleged misconduct received were assessed as follows:
  • 94 (21.5%) - referred internally for further review, primarily by ASIC's Insolvency Practitioners team.
  • 292 (66.8%) - not pursued due to no breach of the Corporations Act by the Practitioner or insufficient evidence of an offence.
  • 51 (11.7%) - no action taken.
ASIC also continued its industry-wide compliance projects monitoring compliance with independence declarations and remuneration reporting:
  • 48 DIRRIs were reviewed and 27 (56.3%) were found to have inadequate declarations  and required reissuing.
  • 40 Remuneration Reports were selected for detailed review and no issues were identified in 21 (52.5%) reports.  Of the remaining 19 reports, some level of corrective action around disclosure or approval was required, however no matters warranted formal investigation or enforcement action.
In relation to the level of inadequate independence disclosures, ASIC Commissioner John Price noted that "given [ASIC's] guidance, and education programs though the IPA, there is no good reason for such a failure rate."
Full details of ASIC's supervision activities, including full definitions of the various surveillance activities, is provided in the report.  A copy of ASIC's report for 2011 is available via the ASIC website here.

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