Govt backs re-empowering ASIC on continuous disclosure

The Federal Government has backed a reversal of legislative amendments impacting the Australian Securities and Investments Commission’s (ASIC’s) enforcement of continuous disclosure laws.

The Assistant Treasurer and Minister for Financial Services, Stephen Jones has signalled that the Government will be picking up on the recommendations of the independent review of the changes to the continuous disclosure laws.

That review found that the 2021 amendments have had and were likely to continue to have a negative impact on ASIC’s enforcement of continuous disclosure laws.

It recommended that the Government remove the requirement for ASIC to prove in civil penalty proceedings that disclosing entities had acted knowingly, recklessly or negligently.

Releasing the results of the review undertaken by Dr Kevin Lewis, Jones said the Government was committed to ensuring the integrity and transparency of Australia’s capital markets and that the continuous disclosure laws were essential for investors to make informed decisions.

It is vital ASIC is able to pursue breaches of continuous disclosure laws expeditiously and efficiently to promote market behaviour that makes Australia’s capital markets more attractive.

The Government has also noted Dr Lewis’ observation that the Government should reconsider the appropriateness of retaining the 2021 Amendments for private litigants should evidence emerge that it is having a negative effect on disclosure practices.