MESSAGE FROM OUR CEO – 27 October 2017


ASIC IS FAILING SMALL BUSINESS: We refer to an article in last Saturday’s edition of The West Australian newspaper under the heading: ‘Why ASIC is failing our small businesses’ copied below) in which the article reports: “Australia’s under-resourced corporate regulator has emerged from the US lawsuit against Rio Tinto as an irrelevancy when it comes to exposing and prosecuting wrongdoing at the big end of town. But out-of-pocket small businesses are also entitled to ask whether the Australian Securities and Investments Commission has their backs. The most vulnerable victims of a company collapse are the trade creditors. In many cases, they’re small businesses that can ill-afford the loss. Sometimes that unrecoverable debt is enough to also force them under.

And, it is inconceivable that as the report states: “just 129 of those more than 8000 initial cases of alleged misconduct were referred for compliance, investigation or surveillance. Any wonder that dodgy operators think they can get away with bad behaviour?”.

Whilst the Government has done much to support small business, it seems much house keeping needs to be done to address, as a matter of urgency, the reprehensible situation of where: “For all the hundreds of millions of dollars lost every year because of insolvent trading, there seems to be little justice available for the [small business] victims.