ASIC’s proposed updated guidance will facilitate the distribution of offers of securities by email and internet which should lead to cost savings and more efficient distribution of information for entities offering securities. If adopted in the proposed form, entities wishing to use electronic means in offering securities will need to review their practices to ensure compliance with the new guidance.
ASIC has issued Consultation Paper 211 Facilitating electronic offers of securities: Update to RG 107 which proposes to update Regulatory Guide 107 Electronic Prospectuses to ensure that ASIC’s policy reflects technological advancements and increased market use of internet and electronic devices for dissemination of information.
The proposed updated guidance includes:
- an explanation of ASIC’s view on the role of the internet and other electronic means in making offers of securities;
- good practice guidance to assist persons using electronic means to offer securities; and
- continuation of relief for the use of application forms which are personalised or created by an AFS licensee (eg a broker).
One of ASIC’s key focuses is clarifying the extent to which electronic distribution of prospectuses is lawful and ASIC has indicated that in many cases, relief to make electronic offers will not be needed.
Submissions on Consultation Paper 211 are due by 12 August 2013, with ASIC intending to release an updated Regulatory Guide 107 in November 2013.
See also ASIC’s media release dated 17 June 2013.