Court appoints receivers for Brite Advisers
A financial services licensee that provided an investment platform for SMSFs has had receivers appointed by the Federal Court.
In October, ASIC froze the assets of Brite Advisers following concerns about the unknown financial position of the firm. The action was taken as Brite had failed to submit its financial statements and auditors' report for the fiscal year ending on June 30, 2022, as required by ASIC.
It also had concerns that the value of Brite’s funds under management had not been reported by any entity within the Brite Group in an audited balance sheet since December 2019.
On 13 December 2023, following a three-day hearing, the Federal Court made orders appointing Linda Smith and Robert Kirman of McGrathNicol as corporate receivers and managers of Brite Advisors Pty Ltd (Brite).
The receivers are tasked with conducting further investigations into Brite and the approximately $1 billion client pension funds under its management.
The receivers are to provide a report to the court and ASIC on their investigation within 42 days.
In making the orders appointing receivers, the court noted that the concerns raised by ASIC, and those raised by the Investigative Accountants, were both wide-ranging and serious, and required further detailed investigation.
Among the concerns is a significant variance of US $69 million in client funds which had not been adequately explained by Brite. There are also significant concerns over the management of Brite.
The court re-made asset preservation orders restraining Brite but enabling the receivers to carry on the operations of Brite. ASIC has taken these steps to protect client assets, and the management of those assets, on an ongoing basis, while the investigations continue.
