Tripling of limit on share disclosure
The Australian Securities and Investments Commission (ASIC) is actively considering tripling the monetary limit for share purchase disclosure relief from the existing $5,000 in any consecutive 12-month period to $15,000.
The move, flagged by the regulator this week, is aimed at providing shareholders with expanded investment opportunities and the “industry with flexible capital raising options, without unduly compromising on investor protection”.
Commenting on the move, ASIC deputy chairman Jeremy Cooper said with many listed entities wanting to raise capital quickly in the current environment, the regulator thought it was appropriate to give retail investors wider scope to participate in new equity issues.
“We say this in light of our well-developed continuous disclosure regime, the confidence with which retail investors access the market in other ways, for example, through direct online brokers, and where the average value of orders placed by retail investors is approaching $15,000 anyway,” he said.
AUTHOR
Mike Taylor
Recommended for you
Insignia Financial has reached a major milestone in completing the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
Proper recordkeeping has been described as the “mortar between the bricks” of the advice process and critical to an FSCP decision as an adviser is suspended for failures in this area.
As investors increasingly seek to embed ESG considerations in their portfolios, a specialist adviser has offered tips for financial planners who may feel overwhelmed in tackling these complex topics with clients.
