May 2023
Apologies, it has just come to my attention that our landline telephone numbers have not been renewed. My telephone contact number therefore is the mobile number + 61 0411 649 261.
Tenure and rates are always negotiable.
The attachment with this newsletter is from RSM regarding their workshops on the 2023 CFE Exam Review Courses.
You will also note there are no listings of media news from the ACCC. This situation has come about about the way their information is presented which is now in a format that makes finding the latest stories too difficult and time consuming to access and then copy in to our newsletter.
Kim is available to help with your questions and concerns if you need any assistance, and as always, the first chat is always free of charge or obligation.
"Do nothing secretly; for Time sees and hears all things, and discloses all." –Sophocles
Keeping a secret these days is almost impossible. This fact is often forgotten when people, both in their private and commercial lives, act in a way that is not acceptable or cannot be hidden over the long term. The release of wartime cabinet meetings and other public settings after a prescribed period of time, are examples where past secrets are revealed.
In the commercial world, there are many ways a secret can be exposed because of an illegal, bad or questionable act such as cartel behaviour, financial fraud or some other act not deemed acceptable by society, etc.
Keeping a secret unknown is only possible when one solitary person knows about the secret and remains silent about it. The exception is of course, where there is digital evidence of the secret such as in a text, email or social media where nothing is secret.
The reasons for exposure of secrets are manyfold and include the following in no particular order of importance when:
In the face of constant revelations of secrets, why businesspeople think they can still get away with bad, illegal or questionable behaviour in business is rather puzzling. The fact is that it is always been in the best long-term interests of businesspeople to avoid indulging in any bad, illegal or questionable behaviour. After all, as many people have found out in recent times, it is almost impossible to keep anything secret these days.
Today, when you ask a salesperson about speaking with a customer or a supplier, or for an accounts person to follow up on an unpaid invoice, too often the reply is “I will send them a text or an email.” Whilst sending a text or email is easy, too often it can be ignored by a person with a vested interest which does not answer the contact. Alternatively, it can be missed by a busy person, or lost in the spam and other email avalanche which we all endure in these modern times.
I suggest that one of the main reasons that businesspeople and their employees are reluctant to pick up the telephone these days is that they have lost the art of having a civil and respectful conversation about a difficult subject. There is no doubt as you approach making a telephone call with the view of seeking a positive result, it is always wise to be civil and respectful to the other person(s) at the other end of the call.
Too often, people forget the value of manners, asking open ended questions and being polite is always the best approach. Furthermore, this approach takes so much pressure off the caller. After all, every phone call is always an enquiry and/or a customer service call. This is a fact irrespective of whether you are following up an unpaid invoice or seeking another sale. Furthermore, many of the issues which caused the need for the phone call may be as a result of a problem caused by your own business. By making an enquiry call, for instance, “… it appears there is a problem, can you please help me?” will more often than not take the heat out or embarrassment out of any situation.
At the end of the day, manners, asking open ended questions and being polite, will make all telephone calls so much more productive for both parties, especially with the right approach. You are also likely to achieve a more positive result rather than sending endless texts and emails, which often remain unanswered.
When we talk about cash in business from the perspective of our introduction, essentially, we are talking about the funds in the business’s bank account(s). We are not talking about cash as a payment methodology, although this is also an essential factor for the potential survival of a business.
Cash in your business’s bank account(s) is the lifeblood of the business and a resource factor all too often minimised by the potential access of credit. The issue is that cash is the means of maintaining control over your business. Access to credit, whilst an attractive thought at first, when utilised, is also the start of potentially losing control of your business.
There may be an argument, that access or finance drawn down for the right reason, i.e., the purchase of an asset to enhance the business’s earning potential, is an essential component in operating a successful business. On that point, I can agree.
The problem is however, that using credit or finance soon becomes addictive, particularly when it is considered to be at a cheap rate. As businesspeople found however at the start of COVID, and the same goes today as interest rates are on the rise, if you have no income, you cannot repay the debt. The most striking fact noticed at the start of COVID was the number of businesses which declared some form of insolvency within three (3) months of the start of COVID. The same outcome of insolvency can be expected in the future as funds become scarce.
Regarding the extending B2B or B2C credit, another source of cash for your business, the story of uncollectable accounts has grown considerably since the start of COVID. As we have come out of the COVID period, many businesses are now finding they are unable to collect unpaid invoices because their customers are becoming insolvent or are just not paying.
Irrespective of whether your business accepts or extends credit, the fact of business life is that now you are seeing how important it is to understand the role cash plays in the long-term survival of your business.
Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, has called on digital platform providers to dramatically improve their dispute resolution processes for small business.
Mr Billson said there has been a noticeable increase in complaints and disputes involving digital platform providers, and since July 2020 the Ombudsman has taken on more 236 cases involving small and family businesses.
“When we become involved it regularly leads to satisfactory outcomes in just a handful of days – which means small businesses can get back in business,” Mr Billson said.
For further information, visit https://www.asbfeo.gov.au/
Updates courtesy of www.asic.gov.au
03 May 2023
Gabriel Govinda (known online as ‘Fibonarchery’) has been sentenced to two and a half years imprisonment to be released immediately on a 5 year recognisance in the amount of $5,000 and fined $42,840 after pleading guilty to 23 charges of manipulation of shares listed on the Australian Securities Exchange and 19 charges of illegal dissemination of information relating to the manipulation.
The Court considered Mr Govinda’s posts on HotCopper about his market manipulation activity to be a breach of s1041D of the Corporations Act. This is the first time a person has been sentenced under this provision.
ASIC Deputy Chair Sarah Court said ‘Mr Govinda used a social media forum as an integral part of his market manipulation. He promoted certain shares that he had an undisclosed interest in, and which he had manipulated, with a view to selling out at a higher price.
10 May 2023
23-121MR Update on ASIC’s recent greenwashing actions
ASIC today released a short report detailing the 35 interventions it has made in response to its greenwashing surveillance activities from 1 July 2022 to 31 March 2023. The report also identifies the increasing levels of representations on environmental, social and governance credentials by listed companies, managed funds and superannuation funds.
ASIC Deputy Chair Karen Chester said, ‘this report discloses ‘how and why’ ASIC has taken action against greenwashing. All 35 interventions follow the release of our ‘How to avoid greenwashing’ information sheet in June last year.’
‘Where we have seen potentially misleading disclosures, we have taken regulatory action. Our interventions range from securing timely corrections, issuing public infringement notices through to commencing civil penalty proceedings.’
‘All 35 of our interventions are aimed squarely at promoting fair and transparent markets so that retail investors and financial consumers are well informed and not misled on the ‘green credentials’ of investments and listed companies. We have ongoing surveillances and several investigations underway and anticipate further regulatory action,’ said Ms Chester.
11 May 2023
23-122MR ASIC sharpens focus on credit and debt management
ASIC is warning credit providers and debt management firms that strong, targeted action against predatory lending, high-cost credit and misconduct impacting consumers experiencing financial difficulty is expected in the coming months as part of its continuing focus on protecting consumers.
The warning comes after ASIC’s Enforcement and regulatory update highlighted over $30 million in civil penalties secured by ASIC, as well as the commencement and finalisation of court proceedings against credit providers in the first quarter of 2023.
ASIC Deputy Chair Sarah Court said ASIC continues to sharpen its focus on credit providers and debt management firms, including those who are unlicensed or ‘fringe’ entities.
‘Credit providers and debt management firms that look to take advantage of vulnerable consumers are in our sights and we expect further action in the coming months against operators in this area,’ said Ms Court.
19 May 2023
23-130MR Linda Marissen charged with assisting Chris Marco’s alleged fraud
Ms Linda Marissen, of Wembley Downs, Western Australia has appeared at the Perth Magistrates Court charged with 34 counts of enabling or aiding the commission of alleged fraud offences by Chris Marco contrary to sections 7(b) and 409 of the Criminal Code (WA).
Following an ASIC investigation, it is alleged that between February 2014 and October 2018, Ms Marissen enabled or aided Chris Marco to defraud more than $29.5 million from six investors. Ms Marissen was employed by Chris Marco as his Executive Assistant.
The criminal charges against Ms Marissen come after Chris Marco was charged in July 2022 with 50 counts of fraud under section 409 of the Criminal Code (WA) (22-186MR).
22 May 2023
ASIC’s insider trading detection project wins data award
SIC has won the Australian Public Service (APS) Data Analytics and Visualisation Award 2023 for its development of a sophisticated insider trading surveillance and detection capability.
The capability was developed by a team of ASIC staff that are specialists in data, analytics, and surveillance.
The new system automatically hunts for and detects suspected market misconduct, profitable and suspicious trading patterns, and identifies connections between traders and potential sources of inside information.
It combines and uses advanced algorithms to analyse data from various sources including ASIC’s data, ASX, ATO and commercial vendors. This new system safely and responsibly uses new technology to allow ASIC to identify harms more quickly and more accurately, and combat misconduct damaging to market integrity such as insider trading.
This work directly supports ASIC’s strategic priorities and enforcement priorities to bolster digital and data capabilities and protect fair and efficient financial markets.
Credit Matters is a financial risk management resource centre for the Australian business community. If you are in business, Credit Matters is your ideal source of financial risk management solutions.
Credit Matters is continuing to grow and provide marketing and knowledge about financial risks to the Australia business community.
Futhermore, we invite marketing and knowledge ideas from our readers and contributors on how we can assist our respective firms grow. If you have any ideas, please contact me at info@creditmatters.com.au.
If you are interested in finding new ways to reach your marketplace, why not try Credit Matters. Our prices for advertising are very reasonable and advertising packages are on offer to make any cost, even more affordable. So if you are interested in reaching your customers at the right price, please contact Kim at info@creditmatters.com.au for options.