Tom Bloomfield
General Manager, Corporate Secretarial Services
tom.bloomfield@boardroomlimited.com.au
+61 2 9290 9617
| Tom Bloomfield
In this update we outline the proposed changes to the ASX listing rules and their potential impact on Listed Investment Companies (LICs) and Listed Investment Trusts (LITs).
On 28 November 2018 the Australian Securities Exchange (ASX) released a public consultation paper titled, ‘Simplifying, clarifying and enhancing the integrity and efficiency of the ASX listing rules’. The stated purpose of the paper is to simplify, clarify and enhance the integrity and efficiency of the ASX listing rules, which have not been updated in a major way since 2016. Subject to the receipt of the necessary approvals, the ASX anticipates implementing the changes in May 2019, to take effect on 1 July 2019. The proposed changes are summarised below, with one proposal being specific to LICs and LITs.
The ASX intends to amend the disclosures by LICs and LITs of their Net Tangible Asset (NTA) backing. The stated reason for the proposed changes is to address recent issues the ASX has with some LICs and LITs regarding their valuation methodology for investments in unlisted securities, and additionally from a desire to standardise and improve NTA reporting generally.
The specifics of these proposed changes are:
Other proposed changes include:
The full text of the consultation paper detailing the entirety of the proposed changes is available here.
LICs/LITs wishing to make a submission with feedback on the proposed changes to the ASX listing rules are encouraged to so in writing by the close of business on Friday 1 March 2019 to mavis.tan@asx.com.au.
This update is prepared by the Company Secretarial Team at Boardroom Pty Limited. The update is designed to provide general information and is not designed to replace legal or tax advice or a detailed review of the subject matter nor is it intended to cover all circumstances.
Click here to download a printable PDF file.
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