Overall summary of changes:

  • New education requirements on the Listing Rules
  • Strong censure powers for ASX
  • Shortened timing for removal of a company from the Official List if in suspension (important reading)
  • Underwriting disclosure requirements widened
  • Results of meeting disclosure regulated by Listing Rules
  • Use of funds disclosure monitored against actual use of funds
  • LIC disclosure and suspension guidance
  • More flexible escrow requirements for smaller escrowed holdings
  • New online form regime

Changes in detail

1. Understanding the ASX Listing Rules and Consequences of Breach

The ASX proposes to introduce education requirements for newly listed companies and a new censure power to deter company executives and directors from breaching Listing Rules or conditions. The tolerance of ASX for companies in suspension will be limited to 2 years (1 year if accounts are not filed).

2. Improving disclosure and integrity requirements

The proposed changes will impose stricter requirements on the periodic disclosure and continuous disclosure requirements that are currently housed in Chapters 3 and 4 of the Listing Rules. Significant proposed amendments to take note of are:

3. Restricted securities

The amendments to Chapter 9 of the Listing Rules are intended to simplify and optimise aspects of the listing process and ongoing compliance with the Listing Rules for ASX and entities already listed or intending to list. The Chapter 9 escrow regime will be streamlined to reduce the administrative burden for applicants seeking to list on ASX. The proposed changes involve:

4. Increasing efficiency through smart electronic forms

ASX will move from paper based forms to smart electronic forms for increased efficiency. In addition, ASX proposes to remove a number of standard forms from the appendices to the Listing Rules and offer these online. The following forms will be offered online:

(a) Appendices 1A, 1B, 1C, 3A.1, 3A.2, 3A.3, 3A.4, 3A.5, 3A.6, 3B, 3C, 3D, 3E, 3F, 3X, 3Y, 3Z, 4C, 4G and 5B.