Australian Securities & Investments Commission v Letten (No 23)

The Australian Securities & Investments Commission v Letten (No 23) involved a dispute over the remuneration, costs, and expenses of receivers and managers appointed to an unregistered managed investment scheme. The case was heard by the Federal Court of Australia, which was tasked with reviewing a decision by a Registrar that had fixed the remuneration of the receivers. The receivers, who were associated with KPMG, sought a review of the decision, arguing that the remuneration, costs, and expenses should be higher than what the Registrar had determined.

The central legal issue before the court was the appropriate method for assessing the reasonableness of the remuneration, costs, and expenses of the receivers in fixing the amount they were entitled to receive. The receivers argued that the basis of calculation and the rates to be applied had already been decided by the Court when it made the Appointment Orders. On the other hand, the Independent Assisting Counsel submitted that the Court should be guided by the principles which apply when company receivers seek to have their remuneration fixed by the Court, and that the list of factors outlined in section 425(8) of the Corporations Act 2001 (Cth) should be applied in this case.

The court found that the receivers' submissions were focused on specific areas of complaint about the Registrar's decision, but did not make any submissions about the approach to be adopted by the Court. The court held that the matter was to be heard de novo and that the principles applicable to the fixing of remuneration for receivers of a company under section 425(1) of the Act should apply in this case. The court found that the Registrar had appropriately exercised his discretion in reducing the receivers' remuneration, costs, and expenses, and dismissed the receivers' application. The costs of the Independent Assisting Counsel were to be paid by KPMG, and KPMG would bear the receivers' costs of the review.