What Does ASIC Do?

The Australian Securities and Investments Commission (ASIC) is Australia’s corporate, markets, and financial services regulator. ASIC ensures that financial markets are fair and transparent, that companies meet their legal obligations, and that investors and consumers are protected.

Key Functions of ASIC

ASIC's responsibilities include:

• Registering companies and issuing Australian Company Numbers (ACNs).
• Enforcing compliance with the Corporations Act 2001.
• Regulating financial services, credit providers, and financial markets.
• Maintaining public registers, such as the register of company directors and the register of company charges.

Example:

If you're setting up a company in Australia, one of the first steps is registering the company with ASIC. ASIC will issue an ACN, which is required for legal and operational purposes. ASIC also ensures that companies follow legal requirements, such as filing annual financial reports and notifying ASIC of changes to directors or company structure.

How Does ASIC Protect Investors?

ASIC has a critical role in protecting investors by ensuring that financial markets operate fairly and transparently. ASIC monitors trading on financial markets, investigates potential misconduct, and takes enforcement action when necessary. ASIC also ensures that financial service providers (such as financial advisers and credit providers) meet legal requirements and act in the best interests of their clients.

ASIC's Role in Insolvency

ASIC also plays a key role in regulating insolvency practitioners and overseeing the process of winding up insolvent companies. Insolvency occurs when a company cannot pay its debts when they fall due. ASIC ensures that insolvency practitioners (such as liquidators) are appropriately licensed and that they follow the legal procedures for winding up companies.

Example:

If a company becomes insolvent and enters liquidation, ASIC oversees the process to ensure that the company’s assets are distributed fairly to creditors. ASIC also investigates potential breaches of the law, such as director misconduct or fraudulent trading.

For more information on how ASIC impacts your business, check out our pages on ABNs and ACNs and incorporated entities.