ASIC releases consultation paper on prospectus disclosure

The Australian Securities and Investments Commission (ASIC) recently released a consultation paper proposing new guidelines for prospectuses, with the aim of improving disclosure to retail investors. While media attention has focused on photos of Jennifer Hawkins used in the 2009 Myer prospectus, the consultation paper has been issued in response to a broad-ranging review of prospectuses, complaints, legal commentary and consumer research reports since 2006, together with industry consultation.

The consultation paper proposes some significant changes to the content and format of prospectuses to address concerns that they are often unclear and difficult to read.

Here, partner Michael Hansel and associate Richard Hanel outline ASIC's key concerns and the main changes recommended in the draft guide.