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Tuesday 29 April 2014

14-089MR ASIC accepts enforceable undertaking from Perth liquidator

ASIC has accepted an enforceable undertaking (EU) from Perth liquidator, Mr Simon Roger Coad, following concerns that he had failed to adequately and properly carry out his duties as a registered liquidator.

Mr Coad currently practises in Perth under the name, ‘Ticcidew Insolvency’.

Under the EU, Mr Coad must improve his systems and procedures for insolvency services and have his practice reviewed twice over a period of approximately six months by an independent quality reviewer. ASIC will monitor Mr Coad’s conduct via reports prepared by the quality reviewer.

Concerns about Mr Coad’s performance as a registered liquidator were identified as part of ASIC’s regular liquidator surveillance activities which reviewed several of Mr Coad’s external administrations.

ASIC formed the view that Mr Coad, among other things:

  • did not have appropriate operational procedures in place to properly conduct external administrations

  • incorrectly continued with a deed of company arrangement that had been terminated

  • had not provided creditors with remuneration reports or compliant remuneration reports for prospective remuneration

  • had not provided compliant Declarations of Independence, Relevant Relationships and Indemnities to creditors

  • either had not undertaken proper investigations, or, had not adequately documented his investigations

  • had not held annual meetings with creditors

  • had not lodged statutory documents with ASIC, and

  • had not properly maintained various files.

Mr Coad has acknowledged ASIC’s views, admitted to the failings identified by ASIC and has taken steps to improve his quality control systems since ASIC notified him of its concerns.

ASIC Commissioner, Mr John Price, ‘This is another case demonstrating ASIC’s commitment to improving liquidator competency but also shows our willingness to work constructively with practitioners to resolve issues and ensure compliance with their obligations.

‘Insolvency practitioners who experience difficulties in managing their workload and cannot meet and maintain professional standards should seek assistance from the Australian Restructuring Insolvency & Turnaround Association, their professional accounting body or from ASIC.

‘Our proactive program of compliance visits for registered liquidators will continue to help identify cases of non-compliance as a result of underperformance and any cases where the non-compliance may be more deliberate or systemic.

‘Practitioners are clearly on notice that ASIC will consider disciplinary action against liquidators who do not seek assistance and repeatedly fail to meet their obligations as a registered liquidator’, Mr Price said.

View the enforceable undertaking

Background

ASIC’s recent actions against registered liquidators who failed to meet their obligations include:

  • ASIC suspending the registration of liquidator Alan Godfrey Topp for six months from 1 May 2014 following a successful application to the CALDB (refer 14-088MR)

  • suspending Sydney liquidator William James Hamilton’s registration for six months from 3 June 2014, following an adverse decision by the CALDB (refer: 14-080MR)

  • cancelling the registration of Melbourne liquidator Avitus Thomas (Tom) Fernandez, following an adverse decision by the CALDB (refer: 13-308MR)

  • ASIC obtaining court orders prohibiting the re-registration of Melbourne liquidator, Andrew Leonard Dunner (refer: 13-239MR)

  • ASIC cancelling the registration of Sydney liquidator, Mark Darren Levi from the industry, following an adverse decision by the CALDB (refer: 13-227MR)

  • ASIC accepting an EU from Sydney liquidator, Ian Lawrence Struthers, who agreed to ASIC cancelling his registration as a liquidator for a minimum of three years (refer: 13-034MR), and

  • ASIC cancelling the registrations of Sydney liquidator, Peter Roger Grealish (refer: 13-132MR), Melbourne liquidator, Paul Anthony Pattison (refer: 13-033MR), and Peter George Biazos (bankrupted on 24 July 2013).

Last updated: 29/04/2014 12:00