What Does Financial Compliance Mean For A Small Business In Australia

The business that you own may be a small one but that also has to run at complete efficiency. To achieve that goal, you need to organize your workplace, set a number of rules and at the same time, and make sure that they are enforced appropriately. At a workplace, you don’t need to control all your employees. But a good set of rules can be enough to maintain discipline and healthy work culture where your employees can become more motivated and productive.

What Does A Small Business Mean In Australia?
In Australia, a small business can be structured under a variety of sectors like company, partnership, trust, joint venture or sole trader. Depending on the structure, registration of small businesses can be done in any of the names. Australian Securities and Investments Commission (ASIC) has set the definition of a small propriety company taking different parameters like a gross asset, revenue and number of employees in one financial year.

How ASIC Assists Small Business?
ASIC supervises the activities of Australian companies, financial service providers, financial markets that deal with activities like investments, superannuation, non-cash payments, insurance etc. The responsibilities of ASIC are as follows:

ASIC provides necessary licenses to the financial service providers and also monitors their activities to be certain that they work with honesty and clarity.
As they have the power to register a company or a business, they can also renew its registration or cancel it in case of any misconduct. Small businesses can report the incident of misconduct of any financial service provider to ASIC.
ASIC acts as a consumer credit regulator. Consumer credit service providers include banks, credit unions and mortgage and finance brokers. As a regulator, it is ASIC’s duty to give license and regulate entities that are engaged in consumer credit activities.
ASIC’s duties as a market regulator involve assessment of financial market operators’ compliance with legal obligations to carry out clear and fair operations as well as informing Parliament of a new market.
ASIC also works in company fundraising by issue or sale of financial products in Australia.