HIH liquidator Tony McGrath has begun his pursuit of $400 million in damages against FAI Insurance advisers, including federal Parliamentary Secretary Malcolm Turnbull, General Re and National Indemnity.

The action against 10 parties – which also includes former FAI executives Rodney Adler, Daniel Wilkie and Tim Mainprize, along with associates – will be lodged by the end of this month.

It seeks to recover the $300 million HIH spent in 1998 to buy FAI, plus damages. The FAI purchase was a factor in the collapse of HIH in 2001.

Mr McGrath is positive he can achieve a settlement with some of the parties by September 30. The most likely candidate will be the now defunct audit firm Arthur Andersen.

Meanwhile, Rodney Adler is preparing to relocate to another prison, where he will serve out the remainder of his sentence of four years and six months.

Mr Adler applied for the transfer late in March to be closer to his family, who must travel to Bathurst for visits, and a review is scheduled for June 14 by the classification committee at Bathurst Prison.