ASIC v Alliance Insurance Broking Services Pty Ltd ACN 095 376 882 and Renato De Maria
Federal Court of Australia Proceeding No VID261/2021
On 14 May 2021, the Australian Securities and Investments Commission commenced proceedings against Alliance Insurance Broking Services Pty Ltd (AIBS) and Renato De Maria in the Federal Court of Australia. In the proceeding, ASIC has indicated that it will apply for an order winding up AIBS as well as an order for the appointment of a provisional liquidator to AIBS. AIBS opposed the orders sought by ASIC and has appointed Pitcher Partners to sell the business conducted by AIBS.
On 11 June 2021, the Federal Court of Australia adjourned ASIC’s application to a date to be fixed.
For the period between now and any sale of the AIBS business, and in accordance with undertakings that it has given to the Federal Court of Australia, AIBS has put the following arrangements in place:
(a) The sum of $5 million has been deposited by a third party into the trust account operated by AIBS.
(b) John Lindholm of KPMG has been appointed as investigative accountant to inquire into and report to the Court as to a number of matters relating to the affairs of AIBS by 23 July 2021 and to monitor transactions made by AIBS in the period leading up to the sale of the AIBS business.
Otherwise, orders have been made by the Federal Court of Australia preventing AIBS from removing, or causing or permitting funds to be removed from its bank accounts, including all trust accounts, other than in the ordinary course of business.
You may wish to seek independent legal advice in respect to your position concerning these arrangements.
The Federal Court of Australia has directed AIBS to notify you of these matters in writing.