Australian Securities and Investments Commission to consult market on securities lending and ‘substantial holding’ disclosure

ASIC today published Consultation Paper CP 319 on securities lending by agents, and subsequent disclosure of a substantial holding in a listed entity.

CP 319 explains how the relevant interest provisions in s608 and 609 apply to agent lending and therefore ASIC’s expectations for compliance with s671B. CP 319 also seeks feedback on proposed legislative relief that aims to improve substantial holding disclosure by these intermediaries, while also reducing red tape. The proposed relief is consistent with ASIC’s policy in Regulatory Guide 222 Substantial holding disclosure: securities lending and prime broking (RG 222) and Class Order [CO 11/272].

ASIC Commissioner Danielle Press said, ‘Our focus is on ensuring the market has adequate information on substantial holdings in listed entities, including substantial holdings that are derived from securities lending transactions.’

ASIC is consulting on the role played by agent lenders in securities lending and the market’s view of any exemption from substantial holding disclosure. We are seeking comments by 6 September 2019.

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