On 12th May 2016, ASIC released a consultation paper proposing to update guidance in Regulatory Guide 228 Prospectuses: Effective disclosure for retail investors (RG 228).

The updated guidance aims to assist companies and their advisers to better understand their disclosure obligations and to improve the quality of historical financial information disclosure in prospectuses. It responds to ASIC`s assessment of the operation of current RG 228 in active capital markets over 2014 and 2015.

The consultation paper sets out:

  • ASIC`s proposals to clarify regulatory settings on the quality and quantity of historical financial information;
  • worked case studies to illustrate the proposed policy settings in practice; and
  • a draft updated version of Section F of RG 228 incorporating the proposals.

The consultation paper seeks specific feedback on the following proposed clarifications of regulatory settings, including:

  • the requirement for audited historical financial information regardless of the issuer’s corporate form prior to listing or historical financial reporting requirements;
  • types of audit opinions that may not be acceptable in a prospectus;
  • appropriate disclosure of asset acquisitions;
  • when financial disclosure is considered ‘current’;
  • disclosure of cash flow statements; and
  • circumstances where historical financial disclosures may not be necessary.

Click on the link above for further details.