The Coalition Government has announced its further commitment to the development of the corporate bond market and expanding retail investor access to this market.
The Government also said it would consult on further reforms aimed at:
- Simplifying disclosure requirements for listed corporates issuing directly to retail investors; and
- Enabling of parallel trading of corporate bonds in the both wholesale and retail markets via a depository interests framework.
A strong retail corporate bond market was expected to benefit both Australian businesses and investors while providing corporates a viable funding sources to help them grow.
Also, it would help the Government to strike a balance between increasing access to capital for Australian business while ensuring retail investors would have access to the information.
The government said that the first changes regarding simplifying disclosure requirements for companies wishing to issue bonds to retail investors were announced in December, 2014.
According to the press release, the retail investors were currently able to invest in Commonwealth Government Securities via depository interests.