ASIC reports on corporate finance regulation July - Dec 2018

ASIC has published it’s six-monthly regulatory update on its activities, with its focus revealed for the next six months.

The report goes over ASIC’s concerns and expectations regarding financial information presented in prospectuses, on-market buy-backs and expert valuations.

The Corporations team at ASIC is responsible for regulating the conduct of corporations, focusing on equity fundraising and control transactions. The team assesses applications for relief, including financial reporting, reviews documents lodged with ASIC, and promotes good corporate governance.

From July - December 2018


When it came to fundraising, the top disclosure concerns were that the business model wasn’t fully or adequately disclosed, there were misleading or unclear statements, unclear or insufficient detail in terms of the use of funds, inadequate, insufficiently prominent or not tailored risk disclosures, and insufficient summary, investment overview or key information.

  • 296 original disclosure documents lodged

  • 143 supplementary or replacement disclosure documents lodged

  • $7.6 billion sought to be raised under offers

  • $5 billion actually raised under offers seeking over $30 million

  • 17 per cent of fundraisings required additional disclosure

  • 11 interim stop orders were issued

  • 2 final stop orders were issued

  • 70 applications for relief regarding fundraising were received

  • 75 per cent of fundraising relief applications were granted

Mergers and acquisitions

  • 20 transactions were launched via takeover bid

  • 24 control transactions launched via scheme and trust scheme

  • $18.6 billion total implied value of targets subject to control transactions

  • 25 approvals under item 7, s611

  • 73 applications for relief regarding takeovers

  • 49 per cent of takeover relief applications granted

  • 21 applications for relief regarding substantial holding provisions

  • 37 per cent of substantial holding relief applications granted

Other corporate governance transactions

  • 160 notices of meeting with related party benefits

  • 49 s218 applications to reduce lodgement period

  • 17 requests for no-action letters regarding financial reporting

  • 2 requests for no-action granted

  • 138 applications for relief regarding financial reporting

  • 76 per cent of financial reporting relief applications granted

  • $146 billion of share buy-backs undertaken by 113 companies

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