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