ASIC found that Naidenov used funds of companies in liquidation to settle liabilities of unassociated companies and did so without appropriate documentation.

ASIC represented to the Committee that, in ASIC's view, "Naidenov was not a fit and proper person to be registered as a liquidator, as he had failed to carry out adequately and properly his duties as a liquidator".

The Committee disagreed. It said that Mr Naidenov failed to act with the degree of due care and diligence required. However, the Committee was not satisfied that Mr Naidenov was not a fit and proper person to remain as a registered liquidator.

The penalty applied? He is not permitted to take on any new business until the end of April 2024 (but is free to continue with existing cases) and he must arrange, and pay for, "peer review" of six cases over the next two years.