Report on company activities and property (ROCAP)
After an extensive revision process and industry consultation conducted through an external consultant, ASIC has released the new ROCAP - Report On Company Activities and Property to replace the RATA.
The ROCAP comprises three parts:
Part A: Form 507 (lodged with ASIC)
Part B: Questionnaire style form for directors to complete and give to you (not lodged with ASIC and does not form part of Form 507) see note
- Instructions: which comprehensively guide directors in completing the ROCAP.
The ROCAP reflects ‘best practice’ forms design and uses behavioural design principles in its layout, style, language and other factors that make the form easier for directors/officers to understand and complete.
allows a director/officer to attach printouts from accounting software for specific questions, thereby avoiding excessive form filling time.
is in the form of ‘yes/no’ answers in a questionnaire style, using ‘tick boxes’ so that a director/officer only need include relevant information.
includes instructions that cater for varying abilities to complete the form. The design uses behavioural tools allowing the director/officer to easily move between the form and instructions as they complete the form.
The benefits for you
All parts of the ROCAP's design aim to ensure that you receive the right information. Part B is a critical component, providing you with important information to help with your administration. It standardises basic questions practitioners ask of directors across administration types (supplementing or replacing the usual precedent questionnaires which can vary in quality and content). We anticipate this ultimately assisting you complete the online Form EX01 which we’re also reviewing (see FAQ).
The ROCAP can also benefit you by:
reducing time spent on your administration. Testing shows the form facilitates directors completing it, thereby reducing time spent following up information they did not provide and reducing your time making requests under ASIC’s Request Assistance for External Administration.
improve communications to creditors.
Note: Please ensure you do not lodge Part B with ASIC as it may contain confidential information provided by the director/officeholder. Lodging Part B places it on the public record and may result in a breach of the Privacy Act 1988. You should ensure you change your checklists and internal systems so that your staff know not to lodge Part B. If you inadvertently lodge Part B, please contact ASIC's customer contact centre on 1300 300 630 immediately.
Q: Why is Part B not lodged with ASIC?
A: ASIC originally intended a single form incorporating parts A and B lodged with ASIC as Form 507 – but with only Part A available on the public record. Currently Form 507 consists only of Part A.
Importantly, our work shows that directors are more likely to complete Part B if they know it is not on the public record. Accordingly, until we can implement effective processes to facilitate confidential information remaining off the public record, ASIC requires lodgement of only Part A, the Form 507.
For now, please ensure you do not lodge Part B with ASIC.
Q: Do I lodge the ROCAP in the same way as I lodged the RATA?
A: Yes – the liquidator portal accepts the ROCAP. Please lodge the ROCAP (Form 507 Part A) instead of the RATA in the usual way.
Q: What happens during the three-month transition period?
A: For current EXADs, you may have to lodge the old RATA. The liquidator portal allows you to lodge the old RATA as well as the ROCAP.
For all new EXADs post 1 November 2018, please ensure that you issue the ROCAP for the director/officer to complete.
We ask that you make every effort to transition to the ROCAP now. We have engaged with the DSPs (CORE and MYOB) to help you be ready for this.
Q: How will the ROCAP affect my current referrals ROCAP affect my current referrals to ASIC’s Request Assistance for External Administration?
A: ASIC will continue to action matters you referred to ASIC for compliance and prosecution that involve the RATA.
The ROCAP reflects behavioural design principles (and underwent user testing) aimed at promoting director compliance. You may find that more directors return a completed ROCAP as they better understand what is required of them. So, we request that you assist us by sending directors the ROCAP using the following guidance.
If you have sent out the RATA for the director to complete and the relevant period to return the RATA (depending on the administration type) has not expired, continue to await expiration of this period. If the director returns the completed RATA, lodge it in the usual way.
If that period expires, and the director did not provide the RATA, we ask that, when you write to remind the director of their obligation, you provide them with the ROCAP to complete. (We understand that practitioners might make several follow up attempts before receiving the completed ROCAP).
If a subsequent period of notice you provide expires, you might then access ASIC’s Request Assistance for External Administration form via the ASIC Regulatory Portal.
Q: Is this the final and only version of the ROCAP?
A: We intend revising the ROCAP periodically, with a Version 2 anticipated following industry feedback after a period of use. You may send your feedback to ROCAP@asic.gov.au. A further version of the ROCAP may coincide with any possible law reform that will facilitate lodgement of Part B with ASIC on a confidential basis.
In time, we may ask whether you provided Part B to the director/officer to complete and whether you received a completed Part B. This will inform ASIC (and, ultimately, stakeholders) about how Part B works in practice.