An individual may apply to ASIC to be registered as a liquidator. ASIC will refer the application to a committee who will consider the applicant's qualifications, conduct and fitness and whether the applicant will take out appropriate insurance. Registration may be subject to conditions, is for 3 years and may be renewed.
A registered liquidator must:
- (a) lodge an annual return with ASIC that includes proof that the liquidator has appropriate insurance; and
- (b) give ASIC notice if the liquidator's circumstances change or if certain other events happen.
Disciplining registered liquidators
If a registered liquidator fails to comply with certain requirements, such as the requirement to lodge a document or give information, ASIC may give directions that may result in the liquidator being unable to accept further appointments. ASIC may also seek a Court order.
ASIC may suspend or cancel a liquidator's registration in certain circumstances. ASIC may also give the liquidator a show-cause notice. If such a notice is given and no sufficient explanation is given, ASIC may take further disciplinary action on the decision of a committee.
Industry bodies may notify ASIC where they suspect there are grounds for disciplinary action.
The Court has broad powers to make orders in relation to registered liquidators (including imposing conditions on registration).