Formica said the change will force advisers to tighten address records, overhaul onboarding processes and prepare clients for a far more rigorous identity\u2011matching regime, with annual reviews becoming a key trigger point, and where mismatched ASIC\u2013ABRS details could cause issues.<\/p>\n
\u201cDirector IDs came in November 2021 and introduced the concept of making sure that someone needed to have a director ID before they became a director of a company, \u201c Formica said.<\/p>\n
\u201cFor us to get the full benefit of the director ID regime, we needed to be able to link the director IDs to the companies of which that person was a director. Without that, we couldn\u2019t get the benefits around phoenixing activity. There are actually changes coming and effective 1 July 2027, we\u2019ll start the process of linking director IDs to the particular companies of which a person is a director.\u201d<\/p>\n
Formica said presently every person needs to have a director ID before they can become a director of a company, but there is no requirement for directors to give their director ID to the various companies of which they may be a director, nor is there any requirement for directors to give their director ID to ASIC.<\/p>\n
\u201cASIC has no spot to store that particular information. Where we\u2019ve got a situation, where the personal details of a director change like their address, typically speaking, we know that we need to give that information to ASIC,\u201d she said.<\/p>\n
\u201cHowever, the person involved is also supposed to be updating the Australian Business Registry Service (ABRS). So, if a director\u2019s personal details change, in addition to updating ASIC, they\u2019re also supposed to update their details with ABRS.\u201d<\/p>\n
She said it was also important to bear in mind that if you are the ASIC agent for a company, you can update the personal details of the director on ASIC, but only the director themselves can update ABRS.<\/p>\n
\u201cJust like only the director themselves could apply for the director ID. They\u2019re the only parties who can update the director\u2019s details with ABRS,\u201d she said.<\/p>\n
\u201cIf you have situations where a client has changed address and they may not have updated their details, it\u2019s best to check in advance before the changes apply as we are going to be linking our director IDs to our companies, and that possibly won\u2019t work if the director details don\u2019t match.\u201d<\/p>\n
Formica said as of 1 July 2027, a new company will need to have director IDs provided to ASIC as part of the company registration process.\u00a0 For existing companies, director IDs are going to need to be given to ASIC when new directors are appointed to that company, when the personal details of a director are updated, or when someone ceases as a director of the company.<\/p>\n
\u201cAs part of that ASIC process of updating the director\u2019s details, they will have to give the director ID information at that stage, and importantly for our existing companies, director IDs are going to need to be given to ASIC within two weeks of the annual review date,\u201d she said.<\/p>\n
\u201cSo, when ASIC sends out its annual review letter, asks the directors to review the information on the ASIC company statement, if it hasn\u2019t already been linked, the director will have two weeks in which to give their director ID to ASIC so they can start that linking process.<\/p>\n
\u201cIn theory, the idea is that come 30 June 2028, all of our directors will have had their ID linked to the particular companies of which that person is a director.\u201d<\/p>\n
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