ASIC’s referral to the Committee alleged that Richard Ernst Aurich 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 by drawing remuneration without the approval of creditors or the court, was not lodging documents with ASIC, and no longer had the required qualifications, experience, knowledge and abilities.

ASIC served a "show cause" notice requiring Auricht to provide a written reply to explain why his registration should not be cancelled. ASIC was not satisfied with the response and as a result convened a committee to decide whether to take disciplinary action.

The Committee noted that Auricht’s failure to follow proper processes around the drawing of his fees has the potential to bring the entire profession into disrepute. It also noted the requirement for registered liquidators to make a number of lodgements across the course of an appointment, which helps to ensure accountability and transparency of the liquidation process and allows ASIC to perform its regulatory functions.