The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking from Goldman Sachs Australia (GS Australia) to improve controls relating to bookbuild messaging in certain equity capital market transactions managed by the company.
Following an investigation into a block trade transaction undertaken by GS Australia in relation to shares in Healthscope Limited, ASIC had concerns about certain representations made by the company to potential investors.
Under the enforceable undertaking, GS Australian will conduct an internal review of policies, procedures, systems, controls, training, guidance and the monitoring and supervision of employees engaged in equity capital market transactions.
The company will also make a community benefit payment of $500,000.
ASIC Commissioner Cathie Armour said the enforceable undertaking reinforces the regulator’s focus on intermediary conduct and standards in capital raising transactions.
“Investors need to have confidence that they are being provided with accurate information in the course of a bookbuild or underwriting process,” she said.
