Regulator has outlined a four-pillar framework aimed at better supporting small businesses and their directors
The Australian Securities and Investments Commission (ASIC) has unveiled an updated Small Business Strategy, setting out its approach to helping small businesses understand their obligations, simplify regulatory interactions, and address misconduct.
The strategy is structured around four areas: education, simplification, engagement and collaboration, and protection and enforcement.
Under the education pillar, ASIC said it has developed resources to help directors understand their obligations across the full lifecycle of a company, from appointment through to winding up, including guidance on responding to financial difficulty.
"There are more than 2.7 million small businesses nationally and their success is vital to communities and the broader economy," said Sarah Court (pictured right), chair at ASIC. "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."
The regulator said it is also working to improve the clarity and accessibility of its registers, portals, and digital services to reduce the compliance burden on small businesses.
According to Court, engagement with small business stakeholders and government agencies will inform further improvements to guidance and digital touchpoints, with the aim of strengthening regulatory coordination.
On enforcement, ASIC said it would deploy its regulatory tools where appropriate to address conduct that harms small businesses, creditors, and consumers.
"We will take action against companies and directors involved in illegal phoenix activity and other practices that undermine those doing the right thing," Court warned.
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