Australian securities regulators say they will be focusing their attention on equity analysts and the risk of the selective disclosure.
The Australian Securities and Investments Commission (ASIC) announced that, following the recent release of new guidance on issuers’ continuous disclosure obligations, it will be focusing on communications between companies and the investment analysts that cover their stock in the upcoming financial reporting season.
“ASIC’s priority is to ensure fair and efficient financial markets. All investors — large and small — should have access to equal information from listed entities when making their investment decisions,” said ASIC commissioner, Cathie Armour.
The regulator says in the coming weeks it “will be working to raise awareness of the risks of selective disclosure when listed companies brief analysts.” It will be reminding key gatekeepers, company officers, individual analysts and their firms, of their obligations. And, it will conduct spot checks with selected companies to hear how companies brief analysts and understand their procedures.