ASIC has today released a consultation paper on proposed updates to its regulatory guidance for external administrators and controllers when reporting and lodging statutory reports about alleged misconduct.

The proposed updates provide greater clarity on ASIC’s expectations of external administrators and controllers’ compliance with the reporting obligations and ASIC’s approach to the reports it receives.

The consultation is in response to feedback received from industry associations, professional bodies, and the Parliamentary Joint Committee’s recent recommendation on statutory reporting obligations. ASIC expects the proposed updates will provide improved guidance on reporting requirements, reducing unnecessary effort and expense.

The reporting obligations are an important ‘front line’ information source for ASIC on possible offences or misconduct by companies. ASIC uses information from some of the reports received to monitor ‘phoenix’ behaviour, take administrative actions such as director bannings, and to identify appropriate cases for enforcement action. These reports are also the source of statistics about insolvency in Australia that ASIC publishes.

ASIC invites feedback on its proposals to update Regulatory Guide 16 External administrators and controllers: Reporting of possible offences and misconduct (RG 16) by 6 June 2024.