Following an ASIC review of incomplete external administrations which Mr Forrest managed, ASIC found Mr Forrest failed to carry out or properly perform his duties.
ASIC Senior Executive Leader - Insolvency Practitioners, Adrian Brown, said insolvency practitioners, who cannot meet their statutory obligations as well as maintain professional standards to an adequate level, should seek assistance from the Insolvency Practitioners Association of Australia, their professional accounting body or from ASIC.
‘This is an example of how ASIC can work with a practitioner to resolve conduct issues. I encourage those practitioners who cannot best serve creditors’ interests, to seek assistance. If they do not, ASIC will consider legal action to remove them,’ Mr Brown said.
Under the terms of the EU Mr Forrest has agreed to:
- ask ASIC to cancel his registration permanently as a liquidator within seven days of ASIC’s acceptance of the EU
- not perform any duty or function of a registered liquidator; and
- provide ASIC with documents and information from time to time for the purpose of assessing compliance with the terms of the EU.
Mr Forrest acknowledged and accepted ASIC’s view that he:
- failed to comply with statutory reporting requirements and lodgements including: lodgement of six-monthly receipts and payments; holding annual meetings of members and creditors or lodging a report with ASIC; and lodging reports of his investigations
- failed to have remuneration approved as required by the Corporations Act; and
- unnecessarily delayed the finalisation of external administrations.
Download the Enforceable Undertaking
Prior to signing the EU, Mr Forrest attended to the finalisation of all those external administrations that required him to be a registered liquidator under the Corporations Act.
Background
Mr Forrest practises under the name of Arthur Forrest, Chartered Accountant and Arthur Forrest Accounting Pty Ltd, in Sydney.