Was the Australian Securities and Investment Commission (ASIC) set up to improve business or just be a nuisance to operations. Its job should be to police the industry and make things run smoothly. However, putting one's nose in when it is not needed is not the best thing to do.
The mining boom is coming to an end as the Chinese economy pulls back from high growth due to wages rising thus demand falling. Companies are looking to move to other Asian countries where labor is cheaper. Australian mining companies are looking to become producers of other things such as technology.
With this move comes threats from ASIC for the miners to keep their noses clean. Apparently they must inform shareholders before they buy tech companies. We have not reached a point yet where shareholders manage companies. Surely, it is up to the CEO and the board to set future company developments and intentions.
ASIC is making accusations that mining companies are "cooking the books" while buying up tech companies. It has said that miners must not use backdoor listing to hide purchases. ASIC is watching Minerals Corporation Limited, InterMet, Nemex, MacroEnergy and Latin Gold.
Surely, with ASIC already making its claims open, shareholders already know what is going on - normal business behavior. Changing business models is not an area ASIC should be watching. This is nothing to do with ASIC. It should stick to asset valuation and financial reporting. It is ridiculous to monitor how capital will be raised. Interfering in the market just distorts it.
Economics by Ty Buchanan