Auditor permanently deregistered over Brite Advisers failure

The winding up of Perth-based financial advice firm, Brite Advisers, for its failure to pay Australian Financial Complaints Authority (AFCA) determinations has had its corollary in the effective de-registration of a company auditor.

The Australian Securities and Investments Commission (ASIC) announced that the auditor, David Makowa of DM Advisory Services, had accepted a court enforceable undertaking entailing surrendering his registration as a company auditor and to never re-apply.

ASIC said it had found significant audit quality findings with respect to Makowa who audited the profit and loss statements and balance sheets of Brite Advisors Pty Ltd (Receivers and Managers appointed) (in liquidation), an Australian Financial Services Licensee, and provided required opinions for the financial years ended 30 June 2019 to 2022.

ASIC said Makowa Makowa admitted he failed to carry out or perform the FY19, FY20, FY21 and FY22 Audits adequately and in accordance with the Australian Auditing Standards and Standards on Assurance Engagements.

Commenting on the issue, ASIC Deputy Chair Sarah Court said confidence and trust underpin the role of company auditors and the independent assurance they provide.

“This trust is critical to maintaining the integrity of our capital markets and enabling investors to make informed decisions. Auditor misconduct is an enforcement priority for ASIC and we will continue to investigate where we identify potential misconduct or non-compliance,” she said.

ASIC announced in October 2023 that it had obtained interim Federal Court orders freezing the funds and assets of Brite Advisors.

Brite and its related entities operated in multiple countries (including the UK, US, Hong Kong, and Australia) providing advisory, pension administration and asset management services. Brite offers an investment platform (Brite Platform) to self-invested personal pension providers, qualifying recognised overseas pension schemes, and self-managed superannuation funds.