New documents published by Mcgrathnicol linked to the liquidation of Brite Advisors Pty Ltd (these are listed below) begin to outline some actions that beneficiaries will soon have to complete. To provide some guidance on what a beneficiary should expect, we have attempted to summarise the documents.
- Court Order dated 2 September 2024: This document contains a court order related to the liquidation and asset distribution framework for Brite Advisors Pty Ltd. It outlines the process for verifying beneficiaries’ identities, calculating entitlements, and the hearing schedule for distribution.
- Update to Trustees and Beneficiaries – 28 August 2024: This update provides information about the ongoing court proceedings, including recent court orders, the receivers’ actions, and frequently asked questions regarding the distribution of assets held by Brite Advisors.
- Update to Trustees and Beneficiaries – 5 September 2024: This is another update to trustees and beneficiaries that discusses the court orders from 2 September 2024 and provides details on the explanatory memorandum, identity verification, and calculation of beneficiaries’ entitlements.
- Eleventh Affidavit of Linda Methven Smith affirmed on 30 August 2024: This affidavit was filed in relation to the Brite Advisors liquidation proceedings. It supports the court’s decisions regarding the distribution framework, identity verification of beneficiaries, and pension withdrawal protocols.
From the documents provided, beneficiaries have several essential responsibilities and actions that they need to take, particularly concerning the distribution of assets held by Brite Advisors. Below are the most important things beneficiaries need to be aware of and the actions they must take:
1. Identity Verification
Beneficiaries will be required to verify their identities before accessing information about their entitlements. This process involves engaging in an “Identity Proofing” process, which may involve working with a third-party contractor to verify identities. Typically, identification standards will require a photo ID and Proof of Address. As Brite Advisors Pty were formed in Australia, and the Reciever is based in Australia, they are likely to follow local market standards for identification. The Attorney-General’s Department of the Australian Government published National Identity Proofing Guidelines 2014 (updated in Aug 2023) that provide an outline of the acceptable documents for identification. For example, on page 28 there is a list of the primary evidence to link a person and a claimed identity:
- Australian passport (including Ordinary, Frequent traveller, Diplomatic, Official and Emergency)
- Foreign passport41 1
- Primary Australian driver’s licence
- DIBP ImmiCard
- If no other primary evidence types are available to establish linkage: Australian government issued proof of age card/photo card2
- If no other primary evidence types available to establish linkage: Australian secondary student identity document (issued by a government agency or Australian school only) (only for applicants aged under 18 years)
Action: Beneficiaries must complete the identity verification process before they can proceed with reviewing their entitlement details via the web-based portal.
2. Review and Confirmation of Valuation Notices
Beneficiaries will receive a Valuation Notice outlining the value of their assets held as of 13 December 2023. This value does not represent the exact amount they will receive but will be used as a reference point for distribution. If beneficiaries have not completed the Identity Proofing by the time their Valuation Notice is ready, the Receivers can grant an extension of up to 7 days to complete this process. Once the identity proofing is complete, the beneficiary is regarded as receiving the valuation notice. During this time, they must log into the Beneficiary Portal, review the notice, and either accept the valuation or raise a dispute if they believe the value is incorrect
Action: Beneficiaries are required to log in to the Beneficiary Portal, review their Valuation Notice, and either confirm or dispute the value of their entitlements. If there is a dispute, beneficiaries need to provide reasons and supporting documentation to substantiate their claims.
3. Disputes Over Entitlement Values
If a beneficiary disputes the value listed in their Valuation Notice, they must notify the receivers within 21 days and provide supporting evidence for their position. If no dispute is raised within this period, the Receivers will consider the Valuation Notice as accepted. If a dispute is raised and supporting documentation is provided, the Receivers will assess whether the dispute is well-founded.If the dispute is not well-supported, beneficiaries will be given an additional 21 days to provide further information or documentation. Failing this, the Receivers may dismiss the dispute.
Action: If the value is disputed, beneficiaries must engage with the Receivers, providing necessary documentation, and may need to apply to the court if the issue cannot be resolved amicably.
Steps and timescales for Identify Proofing and Valuation Notices
| Step | Action by Beneficiary | Timeframe |
|---|---|---|
| Issuance of Valuation Notice | Receive Valuation Notice via secure portal after completing identity verification. | Upon completion of identity verification |
| 21-Day Confirmation/Dispute Period | Review the Valuation Notice and either confirm or dispute the value. | 21 days from receiving the Valuation Notice |
| Confirmation of Valuation | If confirmed, no further action is required. | Within the 21-day period |
| Dispute Raised within 21 Days | Submit dispute with reasons and supporting documents via the Beneficiary Portal. | Within the 21-day period |
| Receivers Assess Dispute | Receivers review and assess the validity of the dispute. | Immediately after the dispute is raised |
| Additional Documentation Requested by Receivers (if needed) | If dispute is not well-supported, the Receivers may request more information. | If the dispute lacks sufficient documentation |
| 21 Days to Provide Additional Documentation | Submit additional documentation to support the dispute. | 21 days from the request for additional documentation |
| Receivers Final Decision on Dispute | Receivers make a final decision; if dispute is accepted, the valuation may be adjusted. | After the final review by Receivers |
| Apply to Court (if dispute unresolved) | If unsatisfied with the final decision, apply to the Court within 21 days. | 21 days from receiving the final decision |
Valuation Notice Process Guide
This simple interactive tool is designed to guide beneficiaries through the process of confirming or disputing their Valuation Notices in relation to a financial trust or liquidation process. The tool walks you through key steps and decision points, helping you understand your options at each stage.
How to Use the Tool:
- Answer “Yes” or “No” to Each Question: Simply respond to the questions that appear based on your current situation.
- Follow the Process: Depending on your answers, the tool will guide you through the steps, including:
- Completing identity proofing.
- Confirming or disputing the Valuation Notice.
- Submitting additional documentation if needed.
- Deciding whether to apply to the court if you’re unsatisfied with the outcome.
- Restart if Needed: You can restart the process at any time by clicking the “Start Over” button to return to the first question.
This tool is designed to simplify the complex process of managing disputes related to financial distributions, providing you with clear guidance and ensuring you don’t miss any important deadlines.
Valuation Notice Process Guide
Have you completed Identity Proofing?
Risk warning: This is not advice and is purely a guide to different situations and for information purposes. It should not be relied upon as an authoritative source. Professional advice is recommended.
4. Pension Withdrawals
The court has increased the cap on regular pension withdrawals from 30% to 50% of a beneficiary’s investments as of December 2023.
Action: Beneficiaries who rely on pension payments for living expenses must ensure that their requests are submitted correctly through the appropriate channels, as per the guidance from the Receivers.
5. Consultation Period and Feedback
Once the explanatory memorandum is distributed, beneficiaries will be given a period for consultation, where they can provide feedback or raise concerns about the proposed distribution methodology.
Action: Beneficiaries should actively participate in the consultation process if they have concerns or feedback on the proposed distribution plan.
This is part of a series of articles on the liquidation of Brite Advisers Pty
- Where evidence is available regarding the robustness of foreign passports it may be appropriate for organisations to request additional evidence in support. ↩︎
- Where a PRIMARY evidence type is used which cannot be verified with the issuing authority, organisations should ensure other evidence types are provided that can be verified with an authoritative source, such as the issuing authority. ↩︎