Australia: Securities

Australian financial markets face a fundamental shift in disclosure requirements from December 2026, as new rules expand substantial holding obligations beyond traditional voting interests to capture derivative positions and economic exposure. Market participants must now navigate complex calculations involving physically settleable derivatives, cash-settled instruments, and offsetting short positions—with no grandfathering for existing holdings.

The Australian Securities and Investments Commission has proposed significant reforms to pre-lodgement advertising rules that would allow companies to communicate more freely with markets before filing disclosure documents. While offering greater flexibility for IPO offerors to gauge interest and address market commentary, the changes raise important questions about investor protection and the potential for premature investment decisions based on incomplete information.

Capital raising is often treated as a discrete event – a round closes, the money lands, and the business moves on. However, for some start-ups and scale-ups, raising capital is a long-term lifecycle decision: each raise shapes the next one, and early decisions around structure, disclosure settings and investor rights can compound over time.

Australia is introducing three new licensing exemptions for foreign financial services providers that will take effect in April 2027. These exemptions—covering professional investors, comparable regulators, and market makers—will allow certain FFSPs to conduct financial services business without obtaining an Australian Financial Services Licence, provided specific conditions are met.

A number of companies listed on the Australian Securities Exchange (ASX) can expect to be captured by new mandatory sustainability reporting requirements as of this financial year.

ASIC’s Transaction Reporting Rules (ASIC Rules) do not impose any obligation for matching or pairing trade reports between counterparties. Neither the ASIC Rules nor Regulatory Guide 251 (RG 251), require that the data...

Article provides small businesses with a practical insight into what these changes mean.

When directors and officers of reporting entities are assessing how to prepare for complying with the new sustainability reporting obligations, it is tempting to look to the Australian Securities and Investments Commission's (ASIC) approach to enforcement of "greenwashing" as a starting point.

Overview of the pathways for resolving priority disputes under the PPS Act and their key components and implications.