On 19 December 2014, the Corporations Amendment (Simple Corporate Bonds and Other Measures) Act 2014 (Cth) (Act) (and the Corporations Amendment (Simple Corporate Bonds and Other Measures) Regulation 2014 (Cth) came into effect. The aim of the new legislation is to improve the attractiveness for companies issuing corporate bonds to retail investors while ensuring that effective consumer protections are maintained. To this end, the Act seeks to streamline the disclosure and liability regimes for “simple corporate bonds”. The Act also clarifies what will constitute “reasonable steps” for the purpose of the statutory due diligence defence to the criminal liability provisions in sections 1308 and 1309 of the Corporations Act 2001 (Cth) more generally (not just in relation to corporate bonds).
See CA Update - October 2014 for further details about the Act.