Perth-based liquidator, Ross Stephen Thompson, has entered into an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC) preventing him from accepting new appointments for three months.
An ASIC investigation of Thompson’s handling of three external administrations found that he “withdrew approximately $24,200 in remuneration not properly approved”, and that he had failed to properly investigate the affairs of the companies.
Thompson was also found to have failed to secure assets in a timely manner, did not adequately record his work, and failed to lodge documents with the regulator, ASIC Commissioner, John Price revealed.
Under the EU, Thompson has been prohibited from accepting new appointments for three months, unless they are joint appointments with another registered liquidator.
The EU also requires Thompson to improve his systems and procedure, repay the $24,200 and appoint an independent expert to review his practices.
“We continue to see similar issues from our surveillance of some insolvency practices; that is, a lack of investigation, not complying with lodgement obligations, poor record keeping and lax practices around remuneration,” Price said.
“Since 2013 ASIC has achieved 20 enforcement-related outcomes relating to liquidators, including cancelling or suspending registrations and entering into voluntary arrangements with liquidators to either exit the industry or engage independent experts to improve their insolvency services.
“We are committed to sanctioning those few practitioners who do not comply with the high standards the law imposes on them.”
