ASIC and the Australian Charities and Not-for-profits Commission (ACNC), the national charity regulator, have formally agreed to collaborate and assist each other to achieve their objectives and to deliver streamlined regulation for registered charities that are also registered with ASIC as companies.

ASIC Chairman Greg Medcraft and ACNC Commissioner Susan Pascoe AM have signed a memorandum of understanding (MOU) to consolidate and strengthen the working relationship between the two agencies.

Mr Medcraft welcomed the MOU, noting that the agreement between the agencies will reduce overlap and help both agencies better achieve their statutory objectives.

‘The agencies keep in regular contact to ensure that the guidance and information we give to charities registered with us and the ACNC is consistent and accurate,’ Mr Medcraft said.

ACNC Commissioner Susan Pascoe said ‘This MOU formalises our two agencies’ working relationship. This MOU will help the ACNC to promote, maintain, and enhance public trust and confidence in the charity sector.

‘Already we have been working together to identify our mutual legislative and system requirements,’ Ms Pascoe said.

The new MOU is a principles-based document that will underpin the future relationship between ASIC and the ACNC. It allows for information sharing, staff secondments, mutual training arrangements, joint taskforces and service agreements.

It does not affect the legal position on what information may or may not be disclosed to the other agency. Both agencies remain subject to existing secrecy and confidentiality provisions in the law.

Last year the ACNC and ASIC announced that charities registered with ASIC (estimated to be approximately 6000) would now primarily report to the ACNC and they would not need to pay the ASIC annual review fee. There is no fee to report to the ACNC or to become a registered charity.

Download the MOU

Note: The Corporations Legislation Amendment (Membership Designations and Other Measures) Regulation 2013 will commence on 1 July 2013.

The regulations:

• reduce ASIC review fees for ASIC registered companies to nil where the company is also registered under the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act), and

• prescribe the membership designations of those who can undertake a review of the annual financial report of a company limited by guarantee or a medium registered entity under the ACNC Act.