HML needs to issue full prospectus: ASIC
The Australian Securities and Investments Commission (ASIC) has restricted Henry Morgan (HML) from eligibility to issue a reduced-content prospectus until 9 June, 2019 which means the firm must issue a full prospectus when raising funds from retail investors.
ASIC’s decision was based on HML’s failure to lodge relevant financial reports for the year ended 30 June, 2017 as required by the Corporations Act.
Under law, a listed company could offer securities using a reduced content prospectus containing information relating only to the particular offer itself.
However, ASIC has the power to ensure that retail investors were protected and prevent a company from relying on these rules if the company breached its continuous disclosure or reporting obligations.
ASIC said that, in such circumstances, the fundraising should occur only with the benefit of a full prospectus so that there was adequate disclosure of a company’s prospects and financial position.
HML has the right to appeal to the Administrative Appeals Tribunal (AAT) for a review of ASIC’s decision.
The firm has been suspended from trading on the Australian Securities Exchange (ASX) since 9 June, 2017.
AUTHOR
Oksana Patron
Recommended for you
While M&A has ramped up nationwide, three advice heads have explored Western Australia’s emergence as a region of interest among medium-sized firms vying for growth opportunities in an increasingly competitive market.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
