ASIC Regulatory Report

September 27, 2019

 

 

 

Earlier this week, the Australian Securities and Investments Commission (ASIC) released their regulatory report on the corporate finance sector for the period between January and June of this year.

 

Key areas highlighted by the corporate regulator included:

  • Fundraising transactions;

  • Mergers and acquisitions;

  • Experts concerning inadequate internal reports and documentation; and

  • Corporate governance issues

With regards to fundraising transactions, the regulator said they had concerns about inadequate disclosure of business models, use of funds and risk disclosures. They were also concerned about the fact they had to seek more disclosure from IPOs focussed on technology, and that documentation and internal reports were found to be inadequate.

Finally, the regulator noted its concerns and intent to focus on misleading and deceptive marketing.

When it comes to concerns surrounding mergers and acquisitions, the regulator said it had to withhold non-objection letters or had to intervene to oppose the approval of scheme developments on four occasions over the period, leading to concerns regarding the impact on market integrity due to poor market practices. ASIC also recommended that directors in-line to receive benefits from acquisitions more closely consider potential conflicts of interest.

Another notable area highlighted by the corporate regulator is climate risk disclosure and its potential to affect corporate governance decisions.

This focus seems timely in light of last week’s global climate change protests.

 

Download your copy of the ASIC report here.

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