ASIC has accepted an enforceable undertaking (EU) from three KPMG partners involved in the Wesptoint collapse, effectively banning them from auditing for a period of time.
The partners include Brett Fullarton, Robert Kelly and Jonathan Robinson.
The EU will mean that Fullerton will not practice as a registered auditor for two years, Kelly for 18 months and Robinson for nine months.
The EU will also require the three partners to undertake 10 hours of continuing professional education on audit-related matters.
Following their respective banning periods, each partner will also be required to have their next three audits reviewed by KPMG's partner in charge. They will also need to pay ASIC's investigation and legal costs.
The EUs came out of the audits undertaken by each of the three KPMG partners of Westpoint companies before the group collapsed in 2006.
A separate action against KPMG was initiated by ASIC to seek financial compensation to repay Westpoint investors for losses arising out the collapse of Westpoint.
ASIC outlined a number of concerns regarding each of the partners. These concerns related to signing unqualified audit opinions, failure to qualify audit opinions and failure to comply with Australian Auditing Standards.
Westpoint collapsed in January 2006 with losses of more than $300 million. The group promoted investments in property development and mezzanine finance.
