New Simplified Capital Raising For Issuers - A Good Start

The Securities Disclosure and Financial Advisers Amendment Bill (the Bill) introduced into parliament last week will undoubtedly streamline fundraising for listed issuers.

The Bill follows recommendations made by the Capital Markets Taskforce in November 2008, aimed at facilitating capital raising by listed issuers. Importantly, the Bill will enable certain listed issuers who are subject to continuous disclosure requirements to raise further capital by using only a 'simplified disclosure prospectus', rather than the full prospectus plus investment statement currently required.

OUR VIEW

While the Bill represents a good start towards faciliting access to capital by listed issuers, a clear focus will be required to ensure that the opportunity to further simplify the regime for such offers, while still retaining an appropriate level of investor protection afforded by the Securities Act, is maximised.