Archived News for Finance Sector Professionals

The Australian Small Scale Offerings Board (ASSOB), Australia's capital raising platform for equity raisings for smaller companies, has set a target of list 100 companies to raise up to $100 million in the 2011-12 financial year.

ASSOB has begun to accelerate its growth of new capital raisings in the past five years, having listed more than 200 companies to obtain in excess of $130 million in new equity capital.

The CEO of ASSOB, Paul Niederer, said that the GFC had driven home to the small company sector the difficulties of obtaining finance from traditional sources.

"Unless you had an asset such as a house with which to anchor your loan, the banks were simply not interested in making non-asset based lending to smaller businesses. In effect, if business owners did not have a physical asset as collateral for a loan, they have generally found banks to be pretty unsympathetic to their financing needs."

ASSOB is now aiming to attract interest both from investors who are increasingly keen to access high potential companies and from entrepreneurs who are recognising that obtaining equity capital gives them a firm basis to grow their businesses and to later approach debt financiers for supplementary finance.

Mr Niederer said that young, start-up and high growth companies in many sectors were turning to ASSOB including internet /IT businesses, green tech and clean tech as well as new media businesses.

New Commission to oversee Not-for Profits

A new Australian Charities and Not-for-Profits Commission (ACNC) will begin operation from 1 July 2012 with responsibility for determining the legal status of groups wanting charitable, public benevolent institution, and other NFP benefits.

IPA Concerns about lack of funding for regulatory oversight

The Institute of Public Accountants, (formerly National Institute of Accountants), has expressed concern about the lack of funding in the 2011-2012 budget for the increases in regulatory oversight planned by the Australian Government.

Report forecasts strong growth for Financial Services sector

The 2011 Environment Scan conducted by Innovation and Business Skills Australia (IBSA) has predicted strong growth in the Financial Services sector, forecasting that industry revenues will grow at an average rate of 5.3 percent to reach $212.5 billion by June 2015.

Driving the Australian dollar higher

The so-called carry trade is believed to be behind much of the recent spurt in the Australian dollar's value against the Greenback.

Steady half year for major banks

Australia’s major banks - ANZ Bank, CBA, Westpac and NAB - have posted a profit before tax of $15.7 billion for the 2010-2011 half year, up 8 percent from last year’s $14.5 billion, however the results are mostly predictable and reflect a half year of little change, according to KPMG's survey of Major Australian Banks Half Year 2011.

Government approves new securities exchange

The Australian Government has granted a licence to Chi-X Australia Pty Ltd (Chi-X) under s795B(1) of the Corporations Act as an alternative securities exchange to boost competition in Australia's financial markets.

Rural Finance Counselling Services to be continued

Minister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig, has announced that the Rural Financial Counselling Services scheme will be continued across Australia for a further four years.

Extension of Capital Gains Tax Loss Relief for Fund Mergers

The Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, has announced the Government will extend the temporary loss relief for merging superannuation funds from 30 June 2011 to 30 September 2011.

Government appoints Greg Medcraft as ASIC Chairman

The Australian Government will recommend to the Governor-General that Greg Medcraft be appointed Chairman of the Australian Securities and Investments Commission (ASIC).

Senate report recommends improvements to encourage banking competition

The Senate Economics References Committee has released the report of its inquiry into competition in Australia’s banking sector, warning that the ‘flight to quality’ that occurred as a result of the GFC has caused concentration of the banking market and increased dominants of the ‘big four’ banks which has the potential for undesirable impacts on competition.

NSW "Black Hole" blows out: Premier

The NSW Premier, Barry O’Farrell, has claimed that the $4.5 billion ‘black hole’ in the State’s finances left by the former Labor Government has blown out by an extra $759 million.

Inquiry highlights need for SME access to finance

An inquiry by the Parliamentary Joint Committee on Corporations and Financial Services on access to finance for small and medium business has found that while SMEs do have access to finance, it is on terms less favourable than prior to the global financial crisis.