Continuous Disclosure By Unlisted Companies And Funds

Poor compliance

At an industry stakeholder liaison meeting in May, the Australian Securities and Investments Commission (ASIC) advised it was observing poor compliance with the continuous disclosure obligations under the Corporations Act 2001 (Act) by unlisted disclosing entities.

As a result, ASIC is undertaking research into the non-compliance and will issue further guidelines reminding unlisted disclosing entities about their obligations under the Act. Enforcement action is then likely to follow.

Which unlisted entities are disclosing entities?

Disclosing entities include the following unlisted entities:

1. Companies which have issued shares following an offer under a prospectus, and the shares have been held by 100 or more persons at all times since the issue.