ASIC has released the final report on its oversight of corporate finance activity between July to December 2019.
Following the release of Report 659 ASIC regulation of corporate finance: July to December 2019 (REP 659), ASIC will shift to providing corporate finance updates through quarterly newsletters. This will improve stakeholder engagement and allow for timely guidance on regulatory issues.
REP 659 provides statistical data and relevant guidance on ASIC’s regulation of fundraising transactions, financial reporting, mergers and acquisitions, experts, and corporate governance issues. It discusses key concerns arising from practices in these areas, including conduct that warranted ASIC intervention and our response to transactional issues identified during the period, and offers insights into future areas of focus.
The report also outlines measures taken in response to COVID-19, including financial reporting lodgement extensions, guidelines about AGMs, and relief measures to enable both emergency and low-doc capital raisings. ASIC will continue to closely monitor the evolving COVID-19 situation and provide further updates as necessary.
In light of restrictions on non-essential public gatherings due to COVID-19, ASIC has cancelled the biannual Corporate Finance Liaison Meetings due to be held in most capital cities in April and May. Restrictions permitting, we intend to hold meetings later this year. For more information, visit the Corporate Finance Liaison Meetings page on ASIC’s website.
Background
ASIC’s Corporations team is responsible for regulating conduct by corporations, with a particular focus on equity fundraising and control transactions.
As part of ASIC’s work, the team:
- conducts real time oversight of corporate finance transactions, including control and fundraising transactions
- promotes good corporate governance
- assesses applications for relief from certain parts of the Corporations Act including the financial reporting provisions in Chapter 2M, the takeovers provisions in Chapter 6, and the fundraising provisions in Chapter 6D.
The team also publishes regulatory guidance, conducts targeted surveillances of identified risk areas and conducts deterrence activities.