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The Federal Court has mandated the liquidation of Brite Advisors on the basis of just and equitable grounds, as a result of an action brought forward by the Australian Securities and Investments Commission (ASIC).
During a hearing held earlier this week, the court was briefed on findings outlined in a report submitted by two investigative accountants it had appointed to the case last November.
The report by Linda Smith and Robert Kirman from McGrath Nicol highlighted that Brite was likely insolvent from at least Oct. 27, 2023. This adds to earlier findings from a previous report, which revealed a discrepancy of US$69 million in the company’s financial reporting.
Brite is a UK-based pension management firm with operations in the US, Hong Kong and Australia. It has an investment platform for self-invested personal pension providers, qualifying recognised overseas pension schemes, and self-managed superannuation funds.
According to Smith and Kirman, Brite claimed to possess US$682 million on behalf of its clients and their beneficiaries. However, their investigation could only account for US$612.9 million in its financial institution accounts.
ASIC initiated legal proceedings against Brite in October to secure interim asset preservation orders. The court has decided to maintain these orders, with amendments to facilitate the execution of duties by the appointed liquidators and receivers and managers.
The court appointed Smith and Kirman as liquidators for Brite. They were also appointed as receivers and managers over Brite’s property, assets, and undertakings held in trust for others.
In a news release about the court’s decision, ASIC said it continues to provide updates on the developments of this case through its Brite Advisors Key Matters page, as the investigation into the company’s activities and financial practices remains active.
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