Australian companies allowed to issue electronic prospectuses

Sydney, Feb 15 Asia Pulse - Regulations have been amended to allow the issuing of electronic prospectuses for offering securities to investors.

The Australian Securities and Investments Commission today released its Policy Statement Number 150 after five months consultation and deliberation on the development of a fully electronic offering system. In a statement issued by ASIC, the regulator says it has granted relief from the Corporations Law.

"A key condition of the relief is that an investor must have access to the relevant prospectus when they apply for the securities, and the same information as an investor using a paper application form," ASIC said. ASIC allows issuers to effectively use technology when designing electronic applications, provided they comply with the conditions of the relief and do not engage in misleading or deceptive conduct. "ASIC has also given relief to allow licensed dealers to personalise and issue application forms for securities created by themselves or by issuers," it said.

"A dealer created form can be different from the application forms provided by issuers with their prospectuses. "The dealer must give clients a copy of the relevant prospectus and a dealers personalised form must contain all the information in the issuers application form that is material to a decision to invest in the securities."

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