Disclosure and liability requirements for retail corporate bonds could be streamlined

Disclosure and liability requirements under the Corporations Act for the Australian retail corporate bond market could be streamlined, if proposals in a new discussion paper are adopted.

Released by the Deputy Prime Minister and Treasurer on Tuesday, the Development of the Retail Corporate Bond Market: Streamlining Disclosure and Liability Requirements proposes that the retail corporate bond disclosure and liability regime should facilitate a sustainable corporate bond market by:

• reducing the regulatory burden on potential issuers while maintaining appropriate investor protection;
• ensuring that investors are made aware of the key features and risks associated with retail corporate bonds, while reducing the complexity of prospectuses; and