ASIC regulations to hit publishers

Tony D’Aloisio

The Australian Securities and Investments Commission (ASIC) has told companies offering unrated debenture products and the media outlets through which they advertise that they will have to comply with a new, tougher set of regulations covering promotion and advertising from January, next year.

The regulator’s intention has been made clear by ASIC chairman Tony D’Aloisio, who said further progress had been made in implementing a ‘Three Point Plan’ for unlisted and unrated debentures in the form of ‘Regulatory Guide 156: Debenture advertising’.

D’Aloisio said that the release of the finalised advertising guide was another important step in implementing the Three Point Plan for this market and the move toward improving disclosure for investors.

“Advertising of these products has played an important role in attracting retail investment to this sector,” he said. “We will now work with debenture issuers and publishers to assist them to comply with the new guide.”

The ASIC chairman made clear that publishers would carry a greater level of responsibility as a result of the regulatory guide. His announcement pointed out that while the primary responsibility for advertising material rests with the organisation placing the advertisement, the publisher or other media conduit might also have some responsibility for its content.

The announcement said that, accordingly, ASIC had provided guidance on the role of publishers and the media in promoting debenture products.

It said a dedicated ASIC team would continue to work with issuers and publishers to assist them in complying with the principles set out in the guide.