Compliance boffins discover unregulated microcosm

ASIC chairman Joe Longo.

One should never under-estimate ASIC for making much of little, particularly in regards to the imposition of compliance where experienced professionals were previously free to call the shots without reference to rules conceived by inexperienced bureaucrats.

So it was that iNO could not but be amused when browsing ASIC’s latest manifesto of intent to see that among the various new ideas detailed therein ASIC proposes to develop a new compliance regime to be applied to the most under-utilised of all of the Federal Government’s myriad, ill-informed insolvency initiatives – Small Business Restructuring (SBR).

Under the heading Registered Liquidators on page 19 we find a new focus for ASIC’s disapproving eye, that being a compliance program for new types of insolvency appointments.

The project status is marked “new” and its key action is to “Develop and implement a compliance program in relation to streamlined liquidation, restructuring, and restructuring plans”.

Given the very limited numbers of appointments that have taken place under the Small Business Restructuring Regime one wonders what the regulator has identified that convinces it that a compliance program is necessary?

Further, is the imposition of a compliance program compatible with the government’s stated wish to “streamline” the restructuring of corporate entities with minuscule turnover?

Of course it could be that in its wisdom no initiative that involves participation by one of ASIC’s regulated populations is complete without a compliance program.

And no doubt the development of the new compliance program will incur a cost to be borne by the regulated population which has been making so much hay from this unregulated loop hole.

If you wish to inflict the regulator’s 40 pages of self-justification upon yourself you can do so at: ASIC corporate Plan 2021 – 2025.

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