Bankruptcy trustee subject to registration conditions following disciplinary committee findings

Mr Daniel Moore’s bankruptcy trustee registration will from today be subject to strict conditions for two years, following an investigation and disciplinary committee hearing.

Mr Moore received a show cause notice in December 2020, in relation to a series of alleged breaches of his duties under the Bankruptcy Act 1966 and associated Inspector-General Practice Directions.

In March 2021, a disciplinary committee was convened to hear the allegations and determine the future of Mr Moore’s registration as a registered trustee.

Concerns were raised about Mr Moore’s trustee registration following an alleged breach of confidentiality, delays in distributing funds to creditors and failure to maintain proper books and records.

The committee found that Mr Moore’s errors were due, among other things, to ineffective systems and controls, and a lack of support resources. 

The committee concluded that Mr Moore’s registration could be retained under specific conditions for a period of two years. These conditions include a ban on sole appointments to administrations; undergoing an audit with a report to be provided to the Inspector-General within three months; ongoing supervision of administrations conducted by two independent trustees; and taking part in additional education about ethics and professionalism.  

AFSA Deputy Chief Executive Gavin McCosker explained that it is a condition of registration that trustees maintain high professional standards.

‘Registered trustees in bankruptcy play an important part in Australia’s financial system,’ Mr McCosker said.

‘It is critical that insolvency professionals are careful and considered in their management of administrations as they are entrusted to administer estates and must strive for fair outcomes for all stakeholders.

‘In addition to meeting legal requirements under Commonwealth legislation, AFSA expects registered trustees to be competent experts who consistently act with impartiality and professionalism.

‘Both AFSA and the disciplinary committee found that Mr Moore failed to meet these standards in recent times.

‘This ruling offers Mr Moore an opportunity to address our concerns in a structured manner.’

See further details, including the committee’s report and the reasoning for its decision.