Letter to the editor - Australian Financial Review, 5 November 2014
Delivery by email: edletters@afr.com.au
Registered liquidators play a crucial role in the Australian financial market and any commentary should acknowledge the improvements that have occurred within the profession ("Keeping the liquidators honest", AFR, November 3)..
ASIC's report into its supervision of liquidators (Report 389 ASIC regulation of registered liquidators: January to December 2013), in fact, highlights:
- A drop in reports of alleged misconduct involving liquidators. Complaints fell from 539 in 2011 to 446 in 2013, showing a positive downward trend; and,
- While so-called ‘conduct’ matters (an alleged deliberate, or at least conscious, act or omission by the liquidator) fluctuated over the same period, matters referred for investigation to our specialist insolvency practitioner team declined marginally.
Importantly, not all reports of alleged misconduct mean a breach of the law occurred. They are mere allegations.
In a large number of complaints that ASIC receives our assessment is that there is no evidence of a breach of the law. Most reports of alleged misconduct result in ASIC educating the complainant, (usually a creditor), about the applicable law or practice, or provides information about the insolvency process.
ASIC has long said there are a few problem liquidators and we’re focussed on removing them – as evidenced by our enforcement action over the past at least three years. We focus on three key areas – independence, competence and improper gain. ASIC actively deals with problems in these focus areas, through surveillance, enforcement and policy work. ASIC also acknowledges industry for its work to address these issues.
We are passionate about lifting standards and ensuring liquidators comply with the law so as to promote a fair, orderly and transparent insolvency market.
John Price
Commissioner, Australian Securities and Investments Commission
Melbourne, Vic
The Australian Financial Review published an AFR edited version of this letter on 5 November 2014.