Australian Equity Derivative Disclosure Reforms: One Step Closer

In brief

• The Government has introduced a Bill containing reforms that would require mandatory public disclosure of all forms of derivative interests once the 5% threshold is reached.
• The reforms will apply to the substantial holder disclosure provisions, director disclosure and beneficial holder notices. The reforms are extensive and fundamental.
• The reforms will not affect the existing 20% takeover rule or the compulsory acquisition provisions.
• The Bill retains the existing concept of "relevant interests" and creates a new concept of "deemed economic interests"- which captures derivative interests which are not relatable to any particular underlying security holding of the writer.