Australian Courtroom appoints receivers to Brite Advisors, following considerations raised by ASIC

Australia’s Federal Courtroom has made orders appointing Linda Smith and Robert Kirman of McGrathNicol as company receivers and managers of Australian Monetary Providers licensee, Brite Advisors Pty Ltd.

The receivers are tasked with conducting additional investigations into Brite and the roughly AUD$1 billion shopper pension funds below its administration.

The receivers are to offer a report back to the Courtroom and to ASIC on their investigation inside 42 days.

The appointment of the receivers follows preliminary motion taken by ASIC in October 2023 to safe interim asset preservation orders in opposition to Brite. The receivers had been subsequently appointed by the Courtroom as investigative accountants and offered a report back to the Courtroom on 8 December 2023.

In making the orders appointing receivers, the Courtroom famous that the considerations raised by ASIC, and people raised by the Investigative Accountants, had been each wide-ranging and critical, and required additional detailed investigation.

Amongst the considerations is a big variance in an quantity of USD $69 million in shopper funds which had not been adequately defined by Brite. There are additionally vital considerations over the administration of Brite.

The Courtroom re-made asset preservation orders restraining Brite however enabling the receivers to hold on the operations of Brite. ASIC has taken these steps to guard shopper belongings, and the administration of these belongings, on an ongoing foundation, whereas the investigations proceed.