Government backs part-paid protections
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The Federal Government has thrown its backing behind the Australian Securities Exchange and the Australian Securities and Investments Commission rule changes with respect to partly-paid securities.
The Minister for Superannuation and Corporate Law, Senator Nick Sherry, said the Government shared the concern of the Australian Securities Exchange and the regulator that retail investors had not fully understood their potential obligations with regard to partly paid securities.
He said that a falling share market this year had meant that some securities that looked like a bargain actually had huge liabilities attached to them and were not understood by the retail investors who purchased them.
"Today's announced rule changes will greatly assist in ensuring retail investors more fully appreciate the implications of this type of security, and that aligns with the Government's overall focus on market integrity," Senator Sherry said.
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