ASIC Unveils Digital Tools for Small Biz Directors

ASIC has today launched a new Small Business Director Essentials hub - a new digital resource to help small business directors understand and meet their obligations.

The hub brings together practical guidance, learning modules and tools in one place, making it easier for directors to access information at key stages of running a company - from planning and setting up, through to operating, restructuring or closing a business.

ASIC Commissioner Kate O'Rourke said the new resources deliver on a key initiative under ASIC's Small Business Strategy and regulatory simplification program, helping small business directors better understand their obligations under the Corporations Act and access practical guidance and learning resources in one place.

'Directors of small businesses are operating in an increasingly complex environment. Many are managing competing responsibilities, responding to changing business conditions and trying to keep up with their legal obligations.

'The new Small Business Director Essentials hub provides directors with a single place to access clear, practical, and targeted resources to help them understand and meet their obligations with ASIC as a director.

'The hub includes guidance tailored to key stages of the director journey, including a director roadmap that helps directors navigate their obligations from planning and setting up a company through to running and closing it.

'Directors can also access practical guidance for important situations, such as becoming a director, meeting their obligations and responding to financial difficulty, as well as free online learning modules that can be completed at any time,' Ms O'Rourke said.

This work has been informed by ASIC's engagement with small business stakeholders and by research involving small business directors. ASIC will continue to engage with small business stakeholders and government agencies to improve its guidance, support regulatory coordination and reduce unnecessary burden for small businesses.

Small business director research

Before developing the new resources, ASIC commissioned research to understand how small business directors access information about their ASIC related obligations and the barriers they face in meeting them.

The research, which surveyed 400 small business directors, found while most directors felt confident in their understanding of their obligations, many were less certain about the consequences of getting things wrong.

Directors also identified time pressures, regulatory complexity, and the cost of seeking professional advice as key barriers to staying on top of their obligations.

Almost half of directors surveyed identified a lack of time and resources to stay across information and updates, and too much regulation to keep on top of, as barriers to meeting their company director obligations (both at 49%). This was followed by the cost of seeking professional advice at 44% and the cost of maintaining compliance at 41%.

Other barriers included having to look at multiple sources to understand director obligations (35%) and too much information to sort through (32%). Only 21% said they did not face any barriers to meeting their company director obligations.

When it came to accessing information about director obligations to fulfil compliance requirements, 41% of directors said they accessed information about their obligations annually, while 23% accessed it monthly or quarterly. One in five (22%) had never accessed information or sought advice about their director obligations from any source.

Accountants were the most commonly used source of information or advice, with 87% of directors having accessed information or advice from an accountant in the last 12 months. Close to half of directors surveyed (46%) identified ASIC's website as a source they had used to access information or advice about their company director obligations in the last 12 months.

Commissioner O'Rourke said, 'The findings highlighted the need for practical, accessible information that helps small business directors understand what is expected of them and make informed decisions about their business.

'We know directors are often balancing multiple responsibilities and competing priorities. The Small Business Director Essentials hub is designed to support directors as they start, run and, where necessary, restructure or close a company.

'By bringing practical guidance and learning resources together in one place, the hub makes it easier for directors to find the information they need, when they need it to meet their ASIC related obligations,' Ms O'Rourke said.