One of the main questions I often get asked is, “What is compliance?” Its a very open question that really needs a lot of time to answer. However what I can answer in a few lines is around ASIC compliance, what do you need to do to remain compliant with the ASIC Corps Act 2001? Can you just jump onto ASIC and make your changes and thats it? Is it that simple? Ah no it is not that simple. Even the annual review requires a solvency resolution to be drafted and executed by the directors. Please see the attached PDF I have generated, while its not a complete listing (and I tried to add everything but it got to big!) it certainly gives you an idea of what is required. Yes some changes don’t need much, while others require a lot. To remain compliant, all is required.
The Federal and State Government have announced a stage one closure of non-essential businesses and social gathering places to slow the spread of coronavirus (COVID-19).
In light of these regulations, we wanted to keep you informed of the steps we’re taking to ensure we provide the best service to you during this difficult time.
Currently, and until the government says otherwise, it is business as usual at CCASA. Our team is healthy and maintaining good hygiene, both in the office and out. And yes, they have enough toilet paper!
Reviews will still be processed. ASIC has not yet released a statement on review fees, so for now, they are all still due on or before the due date. We are here to help, so if you have any questions, please contact your compliance advisor or Craig directly on 0405 140 675.
Currently, nothing has changed for CCASA. We are operating in the same way we were before COVID-19. We are, however, prepared for all scenarios. If we are required to operate remotely, this will not affect what we do, how we do it or our delivery time frames.
We have set up our systems to be fully autonomous from the office and our team is ready to work remotely should the need arise. Our remote solution involves taking home both our computers and phones, enabling us to perform exactly as we do now, but remotely. We are prepared to follow all government rules and directives.
Should we be required to work from home, we won’t be able to deliver printed products (companies/trusts) but we can still provide e-delivery of all products. We will then print and post these products when the government allows us to return to the offices.
ASIC has yet to release a formal statement on COVID-19. We’ll continue to keep you up to date on any ASIC statements or relief packages if or when they are announced.
The team at CCASA wish you the very best and believe you will stay healthy and safe during this time. Please do contact us if you need any extra support or extra services during this time.
Technology has permeated every aspect of our lives. Disruption is transforming industries and creating new ones. With innovation comes both opportunity and benefits. One of the most significant benefits of technological change is the ability to take complex and time-consuming tasks and make them simpler and easier to manage.
One area that is ripe for this type of disruption is regulatory compliance. The area of company compliance in a digital world is an exciting place to be right now, and it’s a change that the Australian Securities and Investments Commission (ASIC) has stated that it’s now embracing.
There are several ways that ASIC has embraced technology and is encouraging other companies to do the same.
One such change is ASIC’s new Innovation Hub. This has been established to allow ASIC to engage with fintech and regtech startups who are disrupting how people and businesses conduct financial transactions. By speaking directly with innovators through the Innovation Hub, ASIC can help them understand the regulatory framework, how it applies to the technology that they’re developing and what ASIC’s expectations are. At the same time, it allows ASIC to stay abreast of developments in the market.
This process is giving ASIC insights and oversight into how compliance should and will operate in high technology areas like digital financial advice, marketplace lending, equity crowdfunding, blockchain and crypto-asset. ASIC has even gone so far as to introduce a regulatory sandbox, that is the world’s first fintech licensing exemption. This means that that eligible fintechs can be exempt from some elements of regulatory compliance as they prepare to go to market.
While ASIC is encouraging technological change, it’s also clear that some things will not be acceptable. In particular, ASIC has stated that organisations can’t make misleading or deceptive statements about their product. This demonstrates their intention to protect consumers as new technological innovations come into the market.
Regtech refers to new technology that helps businesses and consumers meet their regulatory and compliance obligations. This is a hot area for new innovation and has the potential to not only help companies build a culture of compliance, but also to identify new ways they can operate more efficiently and save money.
While ASIC doesn’t regulate regtech directly, it’s keen to support innovation in this space through its Innovation Hub and by meeting with stakeholders in the regtech space. The Innovation Hub offers informal advice to regtech innovators about the regulatory framework and how solutions can operate within that structure.
ASIC is also using new technology to help people resolve regulatory problems. For example, it’s trialling Natural Language Processing and machine learning to enable learning, automation and prediction. ASIC has also received over $6 million from the Australian Government to help it promote the development and use of regtech solutions so that organisations can deliver better regulatory and compliance outcomes. Their objective is to make Australia a global leader in the development and use of regtech.
As the level of regulation becomes more complex, the need for technology that can make it easier for large and small businesses to meet their compliance obligations is increasing. Some companies are even introducing the role of Chief Compliance Officer to deal with the increased responsibility of staying up to date with new regulatory requirements. That’s where technology has an important role to play. Compliance risks will only increase, so the more an organisation can mitigate its risks the better.
At CCASA, we’re also embracing technology to help you navigate the complexities of corporate compliance and reporting. That’s why we’ve developed our new online reporting portal that streamlines your reporting processes. The system does this by:
We’ll also continue to add new functionality to the portal over time to continue to make it easier, more efficient and cost-effective for you to manage your company reporting and compliance.
The technology will benefit anyone who has to manage multiple companies at one time. For example, if you are responsible for the reporting and compliance of 1,200 companies, you may need four employees at a cost of $70,000 per annum each to assist you. In addition, you will need to purchase the necessary computers, hardware and software products. This could cost you almost $15,000 depending on whether you have trusts or self-managed superannuation funds in your structure as well. This would bring the cost of your compliance to almost $300,000, which is considerably more than the cost of leveraging CCASA’s technology at less than $100,000 plus GST per year.
While the cost savings are enticing, our online portal also makes the process of meeting your compliance obligations quicker and more flexible. You’re no longer tied to specific times of the day or paper processes to manage your reporting. You can keep everything on track when it’s convenient for you.
If you’d like to learn more about how CCASA can help you automate your company compliance activities, get in touch.
The Australian Securities and Investments Commission (ASIC) recently introduced a new user-pays funding structure. This means most businesses regulated by ASIC, including private companies, may need to pay an increased fee or new levy.
The fee or levy will be calculated differently depending on the type and size of your business.
If you’re a small proprietary company, ASIC will simply increase your annual review fee by $4 from 1 July 2018. This means that small companies don’t have to provide the same level of information to ASIC as larger companies. A small proprietary company satisfies at least two of these points below:
Businesses that are not small proprietary companies have been put into 48 different categories based on their industry. These include large companies, anyone holding an Australian Financial Services or credit licence, insolvency practitioners and auditors.
Depending on which category your business falls into, you may need to pay a flat levy or a graduated levy. Flat levies will be the same for everyone in the category, while graduated levies will depend on the size of your business or its activities.
The amount of the levies are based on ASIC’s actual costs. This means that they can only be calculated in the financial year after the costs have been incurred. A detailed description of how each levy will be calculated can be found here.
Like every company in Australia, your company will have an annual review date. This is usually the date the company was registered. If you’d like to know when your review date is you can check on ASIC’s Organisation and Business Names search by providing your Australian Company Number (ACN).
Following your annual review date, ASIC will send your company an annual statement and invoice. This invoice must be paid to make sure your business remains registered and to avoid paying any penalties.
Under this new process, you will still receive your annual review fee invoice and the amount you must pay will just be increased by $4. Your invoice will give you options as to how you can pay your annual review fee including BPay and credit card. The only exception to this is if you have chosen to pay your annual review fee in advance. This means you have prepaid your annual review fee for 10 years at a discounted rate.
Even if you have prepaid your annual review fee, you’ll still receive an annual statement. When you receive your company’s annual statement, it’s still important that you check your company’s details and make sure they’re up to date. If anything has changed, like your company share structure or directors, then these details should be updated online.
It’s also worth remembering, that within two months of receiving your annual review date your company directors must also pass a solvency resolution. The only exception to this is if you have lodged a financial report with ASIC within the last 12 months.
The solvency resolution states whether the directors believe your company can pay back its debts when they are due. This must be based on a reasonable opinion and the resolution must be passed by a majority of your company’s directors. A positive solvency resolution says that your directors believe the company can pay its debts when they are due, while a negative solvency resolution says that the directors believe the company will not be able to pay its debts. If your company passes a negative resolution you will also need to lodge a statement in relation to company solvency.
If your business is not a small proprietary company, you will need to register on ASIC’s new Regulatory Portal. You should have received a letter from ASIC about how to register on the Regulatory Portal already. Only your company director or secretary can register on the Regulatory Portal. Once they have registered they can then invite other representatives to use the Regulatory Portal on the company’s behalf.
By 27 September 2018, you may also need to provide ASIC with some information about your business’ activity. This is for companies who are in one of the categories that will pay a graduated levy. This should be provided through the Regulatory Portal.
Small proprietary companies will pay their annual review fee when they receive their annual statement and invoice.
If you’re not a small proprietary company, you will receive an invoice through the Regulatory Portal each January, starting January 2019. If you don’t complete the information required or pay your levy, you may face penalties or other action by ASIC.
If you’re concerned about non-compliance or about having the capacity to perform your annual review obligations with ASIC, CCASA can assist you.
There are several reasons why these changes have been made. The Government wanted ASIC to be more transparent about the cost of regulation. As a result, ASIC now publishes its Cost Recovery Implementation Sheet (CRIS), which outlines what it expects to spend on regulatory activities for the coming year.
By allocating its costs by industry and business type, ASIC can also better focus its resources on those businesses that need the most regulation. For businesses, this funding structure gives them an incentive to self-regulate as businesses that require less regulation will pay less.
Regardless of the size or industry your company is in, we recommend you seek legal and/or accounting clarification to make the best decisions for your company. Get in touch with CCASA for more information about your ASIC fees and to look at how we can save you money.