Australia’s “The Financial Review” had published a detailed slide recently on insolvency practitioner misconduct originating from a study made by ASIC (Australian Securities and Investment Commission).  According to the study liquidators clearly are not acting in creditor’s interest and ASIC is considering a licensing regime and stiffer penalties. 

Based on the number of incidences of misconduct ‘not acting in creditor’s interest’ counted for the highest percentage with 21%, ‘conflict of interest’ was 17%, ‘inadequate reporting to creditors’ was 13%, ‘not executing a case in a timely manner’ was 12%.  Inadequate investigation, excessive cost, fraud and facilitation illegal phoenix came under scrutiny.

Source:  ASIC Australia

BIIA Newsletter March II – 2010 Issue