Compliance Update 05/18 May
ASX
Compliance Updates
Compliance Update
Listed@ASX
Compliance Update 20 June 2018
Update no 05/18
1. Price sensitivity and cross release indication of announcements lodged on ASX Online - anticipated ‘go-live’ date
As previously advised, ASX will be introducing two additional functionalities to ASX Online to allow a listed entity to provide an indication as to whether an announcement lodged for release to the market:
  • is ‘market sensitive’ or ‘non-sensitive’;
  • materially relates to or affects another listed entity and therefore should be cross-released against the name of that entity on the Market Announcements Platform.
The new functionalities will be installed and should be made available over the weekend of 14 - 15 July with an anticipated ‘go-live’ date of Monday, 16 July 2018.
The price sensitivity indication is intended to assist Market Announcements Officers in forming a view on the materiality of the announcement which will lead to accuracy in classifying announcements as either ‘price sensitive’ or ‘non-sensitive’. For reasons of maintaining consistency and integrity, the Market Announcements Office will make the final assessment of sensitivity prior to the release of the announcement.
A further additional function to ASX Online will also enable a listed entity to indicate whether the announcement lodged also materially relates to or affects another listed entity and therefore should be cross-released against the name of that entity on the Market Announcements Platform. The information provided will again assist the Market Announcements Office in more accurately identifying instances where an announcement may be relevant to multiple listed entities. For reasons of maintaining consistency and integrity, the Market Announcements Office will again make the final assessment of whether the submitted announcement should be cross-released.
If you have any queries please contact your Listings Compliance Adviser.
2. ASX Corporate Governance and Listing Rules Roadshow Presentation Slides
Earlier this month, ASX, on behalf of the ASX Corporate Governance Council, conducted a national roadshow to inform listed entities and other interested stakeholders about proposed changes to the Principles and Recommendations being consulted upon, which will result in a fourth edition of the Corporate Governance Principles and Recommendations.
As part of the roadshow, ASX also foreshadowed some important changes to the Listing Rules due out for consultation later this year.
A copy of the roadshow presentation slides and the ASX Corporate Governance Council’s fourth edition consultation package issued on 2 May 2018 are available on the Regulation/ Corporate Governance/ Review and submissions page of the ASX website.
3. Dividend and distribution information - 30 June 2018 record date
Listed entities declaring a dividend or distribution for the period ending 30 June 2018 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 for that period, given 30 June 2018 falls on a non-business day, they must set a record date of Friday, 29 June 2018 and announce the dividend or distribution by no later than Monday, 25 June 2018 (Day 0 in the Appendix 6A paragraph 1 timetable).
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
    • the 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 and 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.
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Listed@ASX Compliance Update is a free publication for listed entities and their advisers about ASX rules and requirements. To subscribe, email Listed@ASX or download the free Listed@ASX app from the Apple app store and Google Play.
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