Revised ASX continuous disclosure policy applies this reporting season

In March 2015, ASX released a consultation paper on proposed changes to ASX Guidance Note 8 (Continuous Disclosure) (GN 8), relating to earnings guidance, earnings surprises and analyst and investor briefings.

All of these are topical issues. Indeed since the last re-write of GN 8 in 2013, ASIC has released its findings on 'Handling of confidential information: briefings and unannounced corporate transactions' and the federal court imposed a $1.2 million penalty on an ASX listed entity arising from selective analysts briefings (about mining production levels and capital expenditure).

The latest amendments to GN 8 arose from ASX concerns that some listed entities had misinterpreted the 2013 updated guidance note around earnings surprises. ASX was concerned that some entities may try to "manoeuvre" analysts forecasts in a non-public or selective manner to align them more closely with their own internal projections (to reduce the perceived risk that they might