On Friday, ASIC told the committee Collins was a representative under the accounting firm’s financial services licence, held by Pricewaterhouse Securities Ltd.
ASIC deputy chair Sarah Court told the hearing that as Collins was a representative of PwC’s AFSL, the regulator had the power to investigate his conduct and was doing so.
PwC acting chief executive Kristin Stubbins.
“We are assessing whether there are sufficient grounds to take action to prevent Mr Collins from providing financial services in the future,” Court told the hearing.
Court said ASIC would also review whether any other PwC partners or the firm had breached any financial services laws, following questions from Labor senator Deborah O’Neill. Court said PwC’s AFSL had about 160 representatives.
PwC’s government consultancy business is one of the firm’s growth businesses, but it has been under pressure with the federal and NSW governments pausing all future contracts with the firm while inquiries were under way.
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PwC attempted to assuage the concerns of its government partners by announcing, via a letter to staff written by acting chief executive Kristin Stubbins, that it would ring-fence the government consultancy group.
“We are moving to quickly establish separate governance and oversight arrangements for the business by the end of September,” Stubbins wrote.
“It will cover all services to federal government departments and agencies, include people, operations and governance within its perimeter and be operationally ring-fenced from other businesses within PwC Australia.”
PwC and Allegro declined to comment.
Allegro has built its name in Australia for investing in businesses that need to be turned around or restructured. It has also previously bought businesses where existing staff retain some ownership.
This includes its takeover of law firm Slater & Gordon, which had been struggling as a listed ASX company since 2015 when its $1 billion acquisition of UK group Quindell nearly destroyed the firm. Under that deal, staff will be able to increase their shares in the group over time.
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