When logged in as admin, you can set the contact and associated email of the admin login user. This contact email is also the sender address of the password reset email. Not only for the admin but for all users that request a password reset. If you set your admin contact email for instance to a gmail address and someone with a gmail address tries to reset his password, he will get an email with:
from: my@gmail.com
to: client@gmail.com
etc.
When you client@gmail.com receives the password reset email it will end up in the SPAM box. When POP3 service is used to retrieve client@gmail.com emails, then it will go unnoticed. When IMAP is used the message will silently go in the SPAM folder and there will be no notification of new mail (bold folder name in Thunderbird; it is SPAM therefore no notification needed, right?) With large hosting companies, with many password resets, the server might even end up being blacklisted.
My suggestions to improve this to either have a full blown smtp client in Liveconfig that would allow sending email from any smtp server or an extra Sender address setting for password reset emails. May be the Sender email should be part of the email template configuration?