The Liquidator Disciplinary Committee has ruled to impose conditions on Steven Naidenov, a registered liquidator, ASIC reported.
The committee's decision, made on Dec. 21, outlined specific conditions aimed at addressing concerns raised by ASIC regarding Naidenov’s conduct.
Naidenov is required to arrange a peer review of six external administrations at his own expense over the next two years, with the external administrations chosen by the corporate watchdog. The committee also decided that ASIC should instruct Naidenov to refrain from accepting any additional appointments as a liquidator from the date of the directive until April 30.
The disciplinary action stemmed from ASIC’s referral to the committee, asserting that Naidenov was not a fit and proper person to be registered as a liquidator. The allegations included a failure to adequately fulfill duties as a liquidator and contraventions of the Corporations Act 2001.
ASIC’s specific concerns included the alleged use of funds from an external administration bank account to cover expenses of related companies, sometimes without sufficient supporting documentation.
While the committee acknowledged Naidenov’s failure to act with the required due care and diligence, it stopped short of determining him unfit to remain a registered liquidator.
“The committee’s decision reinforced the high standard of conduct expected of registered liquidators and that they must act with care in the protection and administration of creditors’ money,” ASIC said in a media release.
“One of ASIC’s enforcement priorities for 2024 is enforcement action targeting gatekeepers facilitating misconduct. This includes registered liquidators.”
The committee also directed ASIC to publish the decision and the accompanying report.
The Committee’s Report dated Dec. 21 can be accessed on the Registered Liquidator Disciplinary Decisions web page.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
