Ms Burke asked the Treasurer, upon notice, on 16 May 2002:

(1) Does the Australian Securities and Investments Commission (ASIC) have any role in the investigation into the discharge of responsibilities of directors of companies in the insurance industry that enter into provisional liquidation: if so, what actions has ASIC taken to investigate the discharge of responsibilities of directors of United Medical Protection (UMP); if not, why not.

(2) Will he initiate an investigation into the directors of UMP.

(3) What penalties can apply to directors of companies that have been found to have traded while insolvent.

Mr Costello (Treasurer) —The answer to the honourable member's question is as follows:

(1) ASIC is the independent statutory authority responsible for the administration and enforcement of the Corporations Act 2001. In relation to UMP, ASIC is awaiting completion of the provisional liquidator's inquiries into the company.

(2) No, pending reports (if any) by the provisional liquidator and ASIC.

(3) The penalties for insolvent trading are outlined in Division 3 and section 588G of the Corporations Act 2001. These include a range of criminal and civil penalties.