ASIC to keep a watchful eye on small business in 2019-20

ASIC has released its corporate plan for 2019-2023, placing a strong focus on small business and its success.

“With small businesses comprising 96 per cent of all companies registered with ASIC, their success is critically important to the Australian economy,” acknowledged ASIC commissioner John Price.  

“As Australia’s regulator for companies, financial markets and providers of financial services and consumer credit, ASIC works to help small business succeed and to ensure a level playing field for honest small business owners.”

In the financial year ahead, ASIC said it will continue to review lenders’ compliance with small business protections in light of the changes to unfair contract terms legislation as well as maintain engagement with important external stakeholders that have a key role to play in small business.

ASIC will also focus on assisting small business owners in culturally and linguistically diverse (CALD) communities, while also helping them access the information they need to improve their financial acumen.

Last financial year, ASIC prosecuted 382 individuals for 827 offences for failure to keep books and records, which is often a classic indicator of phoenix activity.

Over the next period, the ASIC announced it would continue conducting surveillance of potential illegal phoenix activity, which is estimated to cost businesses between $1.1 and $3.1 billion each year out of an overall cost to the economy of between $2.8 and $5.1 billion each year.