17. August 2011 14:19
ASIC today announced it will conduct further consultation on proposals that would revise its policy on how debt securities can be described in offer documents and the preferred form of advertising for these instruments.
In March 2011 ASIC published Consultation Paper 151 Debt securities: Modifying the naming provisions and advertising requirements (CP 151). The proposals are in response to submissions from industry participants expressing concerns about our decision in June last year to discontinue the no-action position in relation to certain non-compliance with the debenture naming restrictions.
Following our review of the submissions received to CP 151, ASIC considers further consultation is required to finalise the policy and will shortly contact the initial respondents in order to seek further submissions.
ASIC also encourages other interested persons who did not provide formal submissions on CP 151 to contact us if they would like to make any comments in relation to the proposals.
In the meantime, ASIC advises that it has extended the interim no-action position that allows issuers to call their products ‘debentures’ where they have provided security over intangible property. This interim no-action position is now due to expire on 31 January 2012.