The Federal Court of Australia issued an order appointing Linda Smith and Robert Kirman of McGradNicol as corporate receivers and administrators of Brite Advisors Pty Ltd, an Australian financial services licensee.。

It is understood the receiver, tasked with conducting a further investigation into Brite and the approximately A $1 billion client pension funds it manages, will submit an investigation report to the court and the Australian Securities and Investments Commission (ASIC) within 42 days.。

Pending the appointment of a receiver, ASIC took preliminary action in October 2023 to obtain a temporary asset preservation order against Brite.。The receiver was subsequently appointed by the court as an investigating accountant and submitted a report to the court on 8 December 2023.。

In making the order appointing the receiver, the court noted that the issues raised by ASIC, as well as by the investigating accountant, were broad and serious and required further detailed investigation.。

One of these issues involved a significant discrepancy in $69 million in client funds, which Brite did not adequately explain, and there were significant issues with Brite's management.。

The court re-issued an asset preservation order restraining Brite but allowing the receiver to continue Brite's operations。While the investigation continues, ASIC has taken these measures to continuously protect customer assets and the management of these assets.。