ASIC wants more clarity in annual reports
Shareholders in Australian publicly-listed companies are likely to get more information from annual reports under new guidance being proposed by the Australian Securities and Investments Commission (ASIC).
The proposed new guidance, canvassed within a consultation paper - Effective disclosure of an operating and financial review - is intended to ensure shareholders receive clearer information from the companies in which they have invested.
The guidance applies most specifically to the operating and financial review elements of the annual reports, intended to allow shareholders to make informed assessments of an entity's operations, financial position, business strategies and future prospects.
Commenting on the proposed new guidance, ASIC Commissioner John Price said the regulator believed opportunities existed for listed companies to make their operating and financial reviews more useful for investors and the market.
"While other documents like investor presentations and analyst briefings also provide important information for investors, these are generally presented as slide shows without supporting narrative and are not a substitute for providing information that is all in one place and accessible with the annual report," he said.
Price said ASIC's proposed guidance was not intended to add unnecessary length to annual reports, but rather was intended to promote more meaningful information and analysis.
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
