New ASIC memorandum to address phoenix activity
The corporate regulator has signed a memorandum of understanding with the Department of Jobs and Small Business (DJSB) to improve how it combats illegal phoenix activity through the Phoenix Taskforce.
Both ASIC and DJSB are part of the Phoenix Taskforce, comprising more than 20 federal, state and territory government agencies, that provides a holistic approach to addressing illegal phoenix activity, ASIC said in a statement.
It said the memorandum will help inform policy reform to address corporate misuse of the Fair Entitlements Guarantee (FEG) scheme.
Further, ASIC noted that key information obtained in the future under the memorandum may include ASIC’s applications to ban directors from involvement in the management of a corporation.
ASIC commissioner John Price said the agreement acknowledges the benefits obtained from sharing information and resources, while maintaining proper information and privacy protections.
“This formal arrangement will allow ASIC and DJSB to engage more co-operatively in administering programs that assist employees affected by company insolvencies,” he said.
DJSB secretary Kerri Hartland said the new memorandum provides a framework for both agencies to enhance the impact and effectiveness of the FEG scheme.
“We’re committed to doing all we can to assist employees affected by company insolvencies,” she said.
“The FEG Recovery Program is already delivering strong results and will keep up the pressure on employers to meet their obligations to employees.”
The FEG scheme provides financial assistance to help employees who lose their job due to the liquidation or bankruptcy of their employer.