Lodge a prospectus for offers requiring disclosure
Offers of securities to retail investors require a prospectus or OIS lodged with ASIC.
Who must comply
Issuers of securities + persons making offers.
What triggers it
Making a disclosure-required offer.
When due
Before opening the offer.
Evidence required
Prospectus + OIS lodged via ASIC; due-diligence file.
Max penalty
Civil + criminal penalties for defective disclosure
Summary
Section 706 Corporations Act requires offers of securities to need disclosure unless an exception applies (small-scale, sophisticated investor, etc.). Prospectus must be lodged with ASIC; 7-day exposure period before opening; contains prescribed content.
Enforced by
Source legislation
Entity types
Topics
Related obligations
- CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
- CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
- CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
- CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
- CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
- CWLTHMaintain AFCA membership (mandatory external dispute resolution)AFSL + ACL holders must be members of AFCA — sole AU EDR scheme.
Frequently asked questions
- Who must comply with a prospectus for offers requiring disclosure?
- Issuers of securities + persons making offers.
- What triggers a prospectus for offers requiring disclosure?
- Making a disclosure-required offer.
- When is a prospectus for offers requiring disclosure due?
- Before opening the offer.
- What is the maximum penalty for a prospectus for offers requiring disclosure?
- Civil + criminal penalties for defective disclosure
- What evidence is required for a prospectus for offers requiring disclosure?
- Prospectus + OIS lodged via ASIC; due-diligence file.
Source: https://asic.gov.au/regulatory-resources/fundraising/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.