The Australian Securities and Investments Commission (ASIC) has handed infringement notices to 12 major companies for allegedly failing to lodge FY24 financial reports with the corporate regulator on time.
This includes three big-name fashion brands, White Fox Boutique, M.J. Bale and Aje. The other nine are Bing Lee, Bob Jane, Frank Green, Harris Scarfe, Global Retail Brands (owner of House, Robin’s Kitchen, etc), Grill’d, McCain Foods, Outdoor Supacentre and Pearl Corporation of Australia (a company believed to be associated with Paspaley).
All 12 companies, which ASIC issued infringement notices of at least $187,800 each, totalling over $2.2 million, have paid in full.
ASIC added that MJ Bale Group paid an infringement notice of $198,000, as its alleged contravention occurred after the penalty unit value increased.
Payment of an infringement notice does not constitute an admission of guilt or liability.
The fines follow a three-month surveillance by the corporate regulator amid increased focus on non-lodgement of financial reports by large proprietary companies.
A proprietary company is classified as ‘large’ if it meets at least two of these conditions: having a total revenue of at least $50 million, total assets of $25 million or more, and/or employs 100 or more staff.
In its surveillance, ASIC examined a range of data sources to identify companies with significant revenue, assets or large numbers of employees that had not lodged financial reports. ASIC engaged with 217 companies and alleges that 70 per cent (151) were non-compliant for failing to lodge a financial report for one or more financial years FY23 and/or FY24. Following ASIC’s queries, 103 companies lodged financial reports (see Table 1) and a further 41 are in the process of doing so.
ASIC prioritised engagement with larger, more material companies and queried whether they met financial reporting thresholds for FY23 and/or FY24. ASIC also contacted companies that had received an auditor breach report for non-lodgement of financial reports.
“Large proprietary companies are legally obliged to provide financial reports to ensure that those dealing with these businesses can make informed decisions,” ASIC commissioner Kate O’Rourke said.
“ASIC is concerned by the substantial number of companies that appear to have not met their obligations either by lodging late or failing to lodge at all.”
“ASIC calls on the directors of large proprietary companies and other entities with financial reporting obligations to proactively review their reporting obligations and ensure financial reports are lodged in a timely manner.”
O’Rourke also reminded auditors of these entities to notify ASIC if they are aware or suspect that a company is not complying with its lodgement obligations.
ASIC also shared a list of companies that lodged an outstanding financial report for either FY23 or FY24, or both. Some key fashion brands included here are LVMH, the wholesaling arm of Aje, and Paspaley.
O’Rourke confirmed ASIC will step up enforcement action against financial reporting conduct into 2026, which includes leveraging a range of data sources to identify potential non-compliance.
“Targeting financial reporting misconduct including failure to lodge financial reports is an ASIC enforcement priority for 2026,” O’Rourke said. “ASIC will continue to monitor and address lodgement failures, including taking regulatory action for ongoing non-compliance.
“ASIC intends to undertake further surveillance work relating to the compliance by large proprietary companies and other entities with financial reporting obligations in 2026.”