The regulator has pledged clearer guidance, easier interactions, and tougher action on misconduct as it refreshes its national small business framework.
The Australian Securities and Investments Commission (ASIC) has launched a refreshed small business strategy that will reshape how the corporate regulator works with Australia’s 2.7 million small businesses.
ASIC said the new strategy had been built around four areas: education, simplification, engagement and collaboration, and protection and enforcement.
On education, ASIC chair Sarah Court said that the regulator had created new resources to help directors better understand their responsibilities.
“We have developed practical new resources to help small business directors understand and meet their obligations throughout the life of their company, from becoming a director and running a company through to the end of a company, and moments in between such as responding to financial difficulty,” Court said.
On the simplification front, ASIC is improving the usability of its registers, portals, and digital services in an effort to reduce friction for small businesses dealing with the regulator.
Those changes are expected to be informed by ongoing consultation with business groups and government agencies.
“Our improvements to guidance and enhancements to digital touch points will be informed by ongoing engagement and collaboration with small business stakeholders and government agencies to share insights, strengthen regulatory co-ordination and reduce unnecessary burden for small businesses,” Court said.
Support and scrutiny
The strategy comes as ASIC looks to balance assistance with enforcement across Australian small businesses, with Court stating that the regulator viewed the sector as vital to the economy.
“There are more than 2.7 million small businesses nationally and their success is vital to communities and the broader economy,” Court said.
“ASIC is committed to helping small businesses by providing clear, practical guidance, making it easier for them to interact with us, and taking targeted action against misconduct that harms small businesses.”
Enforcement line
While ASIC is talking up increased support, Court added that the regulator would use its powers where needed to tackle misconduct.
In particular, she pointed to illegal phoenix activity, where a company is abandoned and its business is shifted into a new entity to avoid debts – as an area of focus.
“We will take action against companies and directors involved in illegal phoenix activity and other practices that undermine those doing the right thing,” she said.
[Related: ASIC to release best interests duty report by Q4]
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