Listed Entities Update 02/16 - Important ASX listing rule information
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Listed@ASX
Compliance Update
18 February 2016
Update no 2/16
 
1. T+2 settlement - confirmation of 7 March 2016 transition date
ASX confirms that the readiness criteria for the transition to T+2 settlement have been met and a decision has been made to proceed with implementation effective Monday 7 March 2016.

Listed entities are reminded that the transition to T+2 settlement impacts corporate action timetables (as contained in the ASX Listing Rules), including:

• minimum 4 business days' notice of record date (rule 3.20.2) - a reduction from 5 business days;
• minimum 3 business days' gap between record dates (rule 7.14) - a reduction from 4 business days;
• minimum 4 business days from security holder approval at a meeting to record date (rule 7.15) - a reduction from 5 business days;
• minimum 4 days business days from provision of disclosure document/PDS/IM to record date (rule 7.17.2) - a reduction from 5 business days;
• reduction of the ex period from 3 business days to 2 business days and other consequential date changes to the timetables in Appendix 3A, Appendices 3A.1 - 3A.6, Appendix 6A and Appendix 7A; and
• change in the first settlement date for trades conducted on a deferred settlement basis to the first day of normal trading following the issue date + 2 business days (rule 19.12, various Appendices) - a reduction of one business day from the first day of normal trading following the issue date + 3 business days.

These changes will apply to any corporate action announced with a record date of 9 March 2016 or later. For corporate actions or quotation of new securities that include a deferred settlement trading period, the changes will apply to issue dates of 4 March 2016 or later.

The associated changes to the ASX Listing Rules, as outlined in the ASX Consultation Paper - Implementing a T+2 Settlement Cycle for the Cash Market: Draft Rule Amendments (pdf) will be effective 7 March 2016.

The ASX Online Forms for the announcement of certain corporate actions (including dividends) have already been amended to calculate the correct ex period based on the transition date. Please refer to the Listed@ASX Compliance update published on 20 August 2015 for more information. Further information is also available in updates published on 15 January 2016, 21 December, 24 November, 31 July, and 10 June 2015.

The information text associated with certain timetable dates (eg record date) will also be updated on 7 March 2016 to reflect the T+2 changes. If the user enters a corporate action with a record date of 9 March 2016 or later an information message appears to confirm the ex date has been calculated according to the T+2 timeframe. This message will cease to appear after 7 April 2016 (one month after the effective date).

ASX is managing a transition period from now until the week of 7 March 2016 for corporate actions. Any corporate action announced that is impacted by the changes (eg one will have a record date of 9 March 2016 or later) will be checked by ASX Operations and ASX Listings Compliance for compliance with the rule changes effective 7 March 2016. If corporate actions are announced contrary to the changes, listed entities must re-announce the correct details of the event.

If a listed entity has announced a corporate action that has an Issue Date, and wishes to amend the Issue Date prior to the rule changes effective date of 7 March 2016, ASX requests listed entities to not amend that Issue Date without having first consulted with ASX.

To assist ASX in reducing the number of change events over our implementation weekend prior to 7 March 2016, ASX also requests that listed entities avoid a change of share registry, name or name and code change effective on 7 March 2016.

If you have any queries on the transition to T+2 Settlement you can find more information at www.asx.com.au/t2, contact your Listings Compliance Adviser or email the ASX project team at T2Settlement@asx.com.au.

2. Dividend and distribution information
Listed entities declaring a dividend or distribution for the period ending 31 March 2016 are reminded that they must use ASX Online forms to announce the dividend or distribution and that if they wish to set a record date of 31 March 2016, they will need to announce the dividend or distribution by no later than 23 March 2016 (Day 0 in the Appendix 6A paragraph 1 timetable, 4 days' notice of a record date, per the timetable changes to be introduced as a result of T+2 settlement implementation).

Listed entities should include the following information in their announcements (refer to Appendix 6A paragraph 1):

• Conduit foreign income - where an entity announces a dividend or distribution that is fully or partially unfranked, the announcement should make clear the conduit foreign income (CFI) component of that dividend or distribution, even if the CFI component is nil.

In the online form, please note that questions 3A.4 Franked amount, 3A.6 Unfranked amount and 3A.7 Conduit Foreign Income amount should all add up to the total amount of the dividend/ distribution as advised at question 3A.1b (that is, the Conduit Foreign Income amount is exclusive of the Unfranked amount).

The announcement of franking details is not compulsory when announcing an estimate of a dividend or distribution.
• Dividend/distribution reinvestment plans (DRP) - where an entity has a DRP or other plan in place, ASX requests that the entity make it clear in the announcement whether the DRP will operate or will be suspended for that particular dividend or distribution. If the DRP will operate, the following information should also be given:
the last date for electing to participate in the DRP (question 4A.2 in the online form);
the discount rate, if applicable (question 4A.3 in the online form);
the ranking of the securities to be issued pursuant to the DRP (question 4A.8a in the online form); and
pricing period and the pricing methodology for determining the issue price under the DRP (questions 4A.4 and 4A.5 in the online form).

If at the time when the dividend or distribution is announced it has not been decided by the entity whether the DRP will operate, or the above details are not known, the entity should give an indication of when the entity expects to confirm details of the DRP's operation (using Part 5 Further information if advising by online form).

Listed entities are also reminded to advise any update to dividend information (including actual amounts, DRP prices) by completing and submitting an Updated Online Form.

If you have any questions please contact your Listings Compliance Adviser or email: onlineforms@asx.com.au.
 
3. Next non-business day
The next non-Business Day under the Listing Rules is Monday 14 March 2016, which is Labour Day in Victoria (while this is a trading day on ASX, it is not a settlement day for ASX Settlement (CHESS) and therefore not a Business Day under the Listing Rules). Please take this into account when planning the timetable for any corporate actions that will take place over a period including that date.
 
4. Periodic report due date reminder
Listed entities are reminded of the next set of due dates for periodic reports for companies with 30 June and 31 December balance dates:

• Preliminary final report for entities with 31 December balance date (Appendix 4E - for entities other than mining exploration entities): Monday 29 February 2016
• Half yearly report for entities (other than mining exploration and oil and gas exploration entities) with 30 June balance date (Appendix 4D and statutory half yearly financial accounts): Monday 29 February 2016
• Half yearly report (statutory half yearly financial accounts) for mining exploration entities and oil and gas exploration entities with 30 June balance date : Tuesday 15 March 2016
• Statutory audited annual accounts for entities with 31 December balance date: Thursday 31 March 2016
• Quarterly Reports for Mining and Commitments Test Entities: Friday 29 April 2016
• Annual Reports for entities with 31 December balance date: Monday 2 May 2016

Listed entities are also reminded that a failure to lodge the relevant documents on time will result in an automatic suspension in the entity's securities (refer to listing rule 17.5).
 
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