Australian Securities and Investments Commission v Piggott Wood & Baker (a firm) (No 3)

In this matter, the Trust, acting on behalf of the solicitors who operated the unregistered managed investment scheme, sought to have the orders varied to reflect the changes made by the Legal Profession Act 2007. The Liquidator opposed the Trust’s application, while ASIC neither opposed nor consented to it. The Attorney-General for the State of Tasmania intervened in support of the Trust’s case. The court was tasked with determining whether the Trust's obligation to apply the Fund towards the Liquidator's remuneration and costs derived from the 2001 Order as varied, or from the Legal Profession Act 1993, or from both. It was also required to decide whether s 657 of the Legal Profession Act 2007 was invalid as being inconsistent with a law of the Commonwealth, and whether the 2001 Order as varied should be further varied to reflect the changes made by the Legal Profession Act 2007.

The court held that the Trust's obligation to apply the Fund towards the Liquidator's remuneration and costs derived from both the 2001 Order as varied and the Legal Profession Act 1993. However, the court found that s 657 of the Legal Profession Act 2007 was not invalid as being inconsistent with a law of the Commonwealth. The court also held that the 2001 Order as varied should be further varied to reflect the changes made by the Legal Profession Act 2007.

Accordingly, the court varied the orders of 13 December 2001, 20 August 2002, 29 August 2007 and 25 February 2008 to remove the obligation of the Trust to pay the Liquidator's costs and remuneration from the Guarantee Fund. The court deleted the words "the Guarantee Fund pursuant to section 108(2)(a)(iii) of the Legal Profession Act 1993" and replaced them with the words "the proceeds of the winding up and/or such sources as may be available". The court also deleted par 2(c)(iii) of the order of 20 August 2002. The parties were directed to file and serve submissions as to costs within fourteen days.