18. October 2010 16:21
ASIC released two new consultation papers earlier today.
CP 142 Related party transactions sets out proposals for updated guidance for companies and managed investment schemes on whether and when an 'arm's length' exception applies when entering into transactions with related parties, or whether the members should be given an opportunity to vote on the proposed transaction. ASIC reiterates that it believes "that details of all arrangements...are material to investors and should be fully described in prospectuses, product disclosure statements and other material sent to shareholders for approval".
CP 143 Expert reports and independence of experts sets out some proposed guidance for experts in making their valuation methodologies clear, and setting out a reasonable basis for the conclusions reached in their report.
Comment on the consultation papers is open until 17 December 2010. ASIC anticipates that, subject to any issues arising from the consultation process, updated guidance will be published to the market in March 2011. More information is available on the ASIC official site.