The Federal Court ordered Brite Advisors be wound up, appointing Linda Smith and Robert Kirman of McGrathNicol as liquidators and as receivers and managers over the property, assets, and undertakings held by Brite on trust for others.
The appointment of Ms Smith and Mr Kirman as liquidators follows their previous court appointments to Brite as investigative accountants on 9 November 2023 and as receivers and managers on 13 December 2023.
At the 6 February hearing, the court was directed to key findings outlined in a report Ms Smith and Mr Kirman lodged with the court on 24 January 2024. Those key findings included that Brite was likely insolvent from at least 27 October 2023. The Australian Securities and Investments Commission (ASIC) commenced proceedings against Brite to secure interim asset preservation orders in October 2023.
The January report followed a report Ms Smith and Mr Kirman filed with the court on 8 December 2023.
The December 2023 report identified a US$69 million variance between the amount Brite told its clients and their beneficiaries that it held on their behalf, and the amount identified by the investigative accountants as being held by Brite in its financial institutions’ accounts. Brite had reported holding US$682 million while the investigative accountants were only able to identify US$612.9 million.
The court has continued the asset preservation orders obtained by ASIC in October 2023. The orders were amended so that they do not prevent the liquidators and receivers and managers from carrying out their court-appointed functions.
In October, when it obtained the asset preservation orders, ASIC said it was concerned that the financial position of Brite was unknown, as Brite had failed to lodge with ASIC its financial statements and auditors report for the financial year ended 30 June 2022, and 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.
Brite and its related entities operate in multiple countries including the UK, the US, Hong Kong, and Australia providing advisory, pension administration, and asset management services.
Brite offers an investment platform – Brite Platform – to self-invested personal pension providers, qualifying recognised overseas pension schemes, and self-managed superannuation funds.
