ASIC reports on emerging market issuers

ASIC reports on emerging market issuers

Companies from emerging markets looking to raise capital in Australia are more likely to have a 'stop' order placed upon them by ASIC than non-emerging market issuers.


ASIC has released Report 521: Further review of emerging market issuers, which found that 19 per cent of the documents received by ASIC in 2016 were from emerging market issuers.

Overall, said the report, the pattern of disclosure document lodgements was similar for emerging market issuers and non-emerging market issuers.

ASIC raised concerns in "approximately 20 per cent" of documents lodged by emerging market issuers, which is consistent with non-emerging market issuers.

However, the corporate regulator generally raised a greater number of comments in emerging market issuer documents.

Emerging market issuers were also more likely than non-emerging market issuers to receive an interim or final 'stop' order.

"Emerging market issuers received 27 per cent of all orders while only accounting for 19 per cent of lodged documents," said ASIC.

Final 'stop' orders issued to emerging market issuerse included two China-based companies: a gold mining company and a financial technology company specialising in blockchain technology.

ASIC also emphasised the important role of gatekeepers to help emerging market issuers understand their obligations when marketing to retail investors in Australia.

"It is important that clients understand the Australian regulatory regime when seeking investment from our market," said the report.

"As such, a significant part of the role of gatekeepers is to guide issuers about the law and market expectations of their behaviour."

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ASIC reports on emerging market issuers
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