ASIC slams inadequate liquidator

A Perth-based liquidator has failed to adequately carry out his duties and been ordered to improve his operating procedures following an investigation by the Australian Securities and Investment Commission.

Simon Coad, who operates under the name Ticcidew Insolvency, was found to have inappropriate working procedures and did not lodge proper documents with ASIC or relevant creditors as required as a registered liquidator.

He was also found to have failed in holding annual meetings with creditors and not properly maintaining files.

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

ASIC said that Mr Coad had acknowledged the failings identified and he had taken steps to improve his quality control systems.

ASIC has accepted an enforceable undertaking under which 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 Commissioner John Price said the case demonstrated ASIC’s commitment to improving liquidator competency.

“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,” Mr Price said.

“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.”