Asic ramps up small business support
Asic has launched a refreshed strategy to help small businesses and company directors understand and meet their legal obligations, simplify interactions with the regulator, and address conduct that affects. . .
Asic has launched a refreshed strategy to help small businesses and company directors understand and meet their legal obligations, simplify interactions with the regulator, and address conduct that affects small businesses. The strategy focuses on four areas: Education, simplification, engagement and collaboration, and protection and enforcement. It draws on research into how small business directors access information and meet their regulatory obligations. Asic chair Sarah Court said Australia has more than 2. 7 million small businesses, and their success is important to communities and the economy. Before developing the resources, Asic surveyed 400 small business directors about how they access information and meet their obligations. While most respondents were confident in their understanding of their obligations, many were less certain about the consequences of failing to meet them. Almost half of directors cited time, resources and regulatory requirements as barriers, followed by the cost of professional advice and maintaining compliance. Multiple sources and the volume of information were cited by 35 per cent and 32 per cent, respectively. Only 21 per cent faced no barriers. Information about director obligations was accessed annually by 41 per cent of directors, while 23 per cent did so monthly or quarterly. Some 22 per cent had never accessed information or sought advice. Accountants were the most common source at 87 per cent, followed by the Asic website at 46 per cent. Asic commissioner Kate O’Rourke said the research showed demand for information that helps directors understand their obligations. “Directors of small businesses are operating in an increasingly complex environment. Many are managing competing responsibilities, responding to changing business conditions and trying to keep up with their legal obligations,” she said. As part of the strategy, Asic has launched the Small Business Director Essentials Hub, a digital resource that brings together guidance, learning modules and tools for small business directors. The hub covers directors’ obligations across the company lifecycle, from planning and incorporation to operations, restructuring and closure. It includes a director roadmap outlining obligations at each stage, as well as online learning modules that directors can complete at any time. The strategy also covers the protection of small businesses, creditors and consumers from misconduct. Asic said it will use its regulatory and enforcement powers to address illegal phoenix activity and other practices that undermine businesses that comply with their obligations. Further reading:Asic clamps down on ‘finfluencers’ in global accord.