The Bill designed to develop a deeper and more liquid retail corporate bond market in Australia by streamlining the disclosure and liability regimes for ‘simple corporate bonds’ has now been introduced into Parliament. If passed, it will assist companies to raise funds by the issue of bonds, giving more options for funding corporate activity. We will continue to monitor the progress of the Bill.
The Treasurer and the Minister for Financial Services and Superannuation introduced the Corporations Amendment (Simple Corporate Bonds and Other Measures) Bill (Bill) into Parliament on 20 March 2013.
The Bill is intended to cut red tape for businesses issuing, and facilitate the buying and selling of, simple corporate bonds.
On 21 March 2013, the House of Representatives referred the Bill to the Parliamentary Joint Committee on Corporations and Financial Services which then sought written submissions and held a public hearing on 22 April 2013. A report from the Committee is due to be released on 15 May 2013.
For more detail on the Bill and the proposed reforms, see the item in the February 2013 G+T Corporate Advisory Update.