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International Law

: Australian Regulatory Compliance Review

ASIC update on unlisted unrated debentures disclosure

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ASIC has released the updated Regulatory Guide 69: Debentures?improving disclosure for retail investors.

ASIC has refined some aspects of the practical implementation in the regulatory guide by clarifying:

  • the disclosure benchmarks for: equity capital, liquidity, loan portfolio, valuations, and lending principles;
  • the disclosure obligations for issuers who on-lend funds indirectly through a related party;
  • that the guide does not apply to debentures that are to be quoted on a financial market, or to debentures that are convertible into listed securities at the discretion of the investors; and
  • the auditors? report on the benchmarks.

When auditing the annual financial report of the issuer, ASIC expects issuers to engage their auditors to provide a separate report in relation to the benchmarks. A pro forma ?auditor?s benchmark report? is available to meet this requirement.

Full post as published by Australian Regulatory Compliance Review on August 30, 2008 (boomark / email).

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