The Australian Securities and Investments Commission (ASIC) has applied in the NSW Supreme Court to allow the former auditor of FAI Insurance, Martyn Scrivens, to give video evidence from London about the collapse of HIH.

In his role as an Arthur Andersen partner, Mr Scrivens oversaw the audit of FAI Insurance accounts for the 1997/98 financial year, just before it was taken over by HIH.

It’s understood he is reluctant to return to Australia in case he is hit with a civil lawsuit arising from his or Arthur Andersen’s role as FAI’s auditor.

Mr Scrivens’ evidence is understood to be crucial to ASIC’s case against former FAI COO Daniel Wilkie and Finance Director Timothy Mainprize when they go to trial next month. They face three charges each – two of them for failing to act honestly in their duties by not telling Mr Scrivens critical information.

The information related to side letters provided to reinsurer General Cologne Re in mid-1998 that guaranteed the reinsurer would not actually have to pay out on a financial reinsurance policy that FAI Insurance had just bought.

Meanwhile, HIH liquidator Tony McGrath has reportedly obtained an order in the NSW Supreme Court allowing him to wind up 41 HIH-related companies.