ASIC releases equity raising disclosure rules
The Australian Securities and Investments Commission (ASIC) has released new equity raising policies to enhance market disclosure and efficiency in capital raisings and unlisted disclosing entities.
The new measures seek to streamline the fundraising process through faster and more effective disclosure, according to the regulator.
“They also aim to make it easier to include retail investor participation in fundraisings by expanding situations were a full prospectus or Product Disclosure Statement (PDS) is not required.”
Listed company and managed investment schemes engaging in equity raisings have increased scope through the measures to update the market though continuous disclosure obligations and a ‘cleansing’ notice instead of the currently required prospectus or PDS.
A cleansing notice confirms the market has all the information the entity would be obliged to release under the continuous disclosure requirements, including information on incomplete proposals or negotiations.
The regulator also announced measures to clarify how unlisted entities should provide continuous disclosure to investors.
An unlisted disclosing entity includes unlisted companies and managed investment schemes with more than 100 members and unlisted debenture issuers.
Instead of lodging information to the Australian Securities Exchange, or just putting information on their website, unlisted entities must lodge with ASIC.
AUTHOR
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.
