ASIC is expected to mount a strong case to use documents seized from two former HIH directors. Rodney Adler and Ray Williams argued in the Federal Court in Sydney last week that the search warrants were not executed lawfully and should be set aside. Their full case will be argued on July 23.

In the meantime, ASIC and the Australian Federal Police have agreed not to read or use the documents before July 27 – a move that is likely to slow down the investigation process. They also gave an undertaking not to use the documents, and also agreed to compile a list of internal communications they had about the search warrants.

Mr Adler also withdrew a separate application before the NSW Supreme Court that sought access to ASIC notes from its questioning of Mr Williams and former HIH CFO Dominic Fodera.