The Australian Securities and Investments Commission (ASIC) has obtained orders in the Victorian Supreme Court appointing Gess Rambaldi as provisional liquidator to Homesafe Equities and Home and Renovators Group.

ASIC alleges that Home Renovators Group was insolvent and breached the Corporations Act 2001 and the Insurance Act 1973 by issuing insurance and financial products without the necessary authority or licence.

Homesafe and Home Renovators Group were providers of builders’ warranty and financial guarantee bonds. Between June 2003 and February this year, the company issued about 790 bonds to Victorian builders.

Mr Rambaldi is required to report to ASIC and the Supreme Court of Victoria no later than 2 August on the state of affairs of the two companies. The proceeding has been adjourned to 14 August.

Builders in Victoria must be covered by an insurance policy that complies with the State Building Act and a related ministerial order.

For domestic building contracts, the insurance covers property owners against non-completion of work and structural defects for a specified period and against a builder’s death, disappearance or insolvency.