Approach to supervision

The focus of the Issuers Unit in its supervision of listed entities is to monitor their compliance with the Listing Rules.  These Rules are ‘principles-based’ and aim to achieve a balance between the interests of listed entities, the maintenance of investor protection and market integrity. The Listing Rules impact on a range of corporate activities.  Issuers Unit's approach is also to provide guidance to listed entities about the application of the Rules and to encourage them to consult at an early stage.

Approach to supervision

In monitoring compliance with the Listing Rules, the objective of the Issuers Unit is to ensure that the underlying purpose of the Rules is achieved.
 
The Unit is active in fostering a culture where listed entities are committed to the principles behind the Rules, and cooperative in giving effect to their underlying intent and purpose.

In terms of its approach to continuous disclosure, ASX Markets Supervision believes that there is a need to be flexible and responsive to achieve the best possible disclosure outcomes.  Importantly, the Issuers Unit also must take into account that time is often of the essence in achieving appropriate outcomes in the context of a ‘live’ market.
 
To achieve the best possible outcomes, Issuers Unit Advisers work closely with listed entities.  Advisers are pro-active and try to engage the cooperation of the entities allocated to them through guidance and education. [link to education narrative]   In many cases, this close contact and communication pre-empts the need for enforcement action, and will result in significantly enhanced information being made available to the market.

Education programs

Issuers Unit plays an important role in providing education and guidance to listed entities and other stakeholders.  Each year, Issuers Unit staff give presentations on a range of topics including continuous disclosure, Corporate Governance reporting, and updates on rule changes.  Educational activities include the following:

  • Presentations to listed entities and their external advisers to update them about Listing Rule changes.
  • Orientation programs.  These are directed at providing practical guidance to newly listed companies on key Listing Rule requirements, such as continuous and periodic disclosure, and other topics that enhance their understanding of how the market works.
  • Presentations to industry groups on topical issues.