The Australian Securities and Investments Commission needs to take a good look at its practices and the way it handles complaints, according to The Nationals Senator for New South Wales John Williams.Senator Williams has grilled ASIC officials during an Economics Estimates hearing, telling them people are fed up with being fobbed off when they lodge complaints about banks and liquidators.

ASIC admitted it had received complaints about now banned liquidator Stuart Ariff in late 2005 and 2006 but after investigating those complaints took no further action.

Citing the case of Ariff, Senator Williams asked what checks and balances ASIC had in place to ensure liquidators are acting honestly and professionally.

“I was amazed to hear that the liquidator completes their own annual return and ASIC does not carry out a routine audit. That’s a recipe for disaster!

I also asked that when a liquidator’s compulsory Professional Indemnity insurance either lapses or is cancelled as in the Ariff case, who alerts ASIC. Unbelievably it is the responsibility of the liquidator in his annual return!

Just these two reasons alone justifies the upcoming Senate inquiry into liquidators and administrators and the role played by ASIC before and after company collapses.

I am also pleased to hear the lengthy investigation by ASIC into the collapse of Storm Financial is nearing an end and its report will be made public in March”, Senator Williams said.