The approval process
Issuing products on ASX is a two-step process: the issuer must be approved, then the product itself must be approved.
1. Issuer approval
A product issuer or manufacturer must nominate an entity as the issuer of the product to be listed on ASX.
That entity must apply to be an approved issuer of products. This includes providing relevant supporting documentation to demonstrate that it meets the eligibility criteria as set out in the ASX Operating Rules. An issuer only needs to be approved as an issuer once.
For sponsored products – namely, those from overseas issuers – the approved issuer is regarded to be the domestic entity that is sponsoring the product.
2. Product approval
Products must also be approved before each issue. The key component of this process is the completion of a product disclosure statement (PDS), as mandated under the Corporations Act 2001. There are some exemptions for certain issues, but given most products traded on ASX are available for retail investors, a PDS or prospectus is likely to be required. ASX will also consider whether the product is suitable to be admitted to trading status on the ASX market or settled through the mFund Settlement Service.
Product approval can take place reasonably quickly, especially if the issuer has already been through the issuer approval process. Product approvals typically take approximately two week to two months from submission, depending on the complexity of the product.
If the issuer intends to go through the two-step process of issuer and product approval contemporaneously, the process can take between three weeks and three months- again depending on the complexity of the product. For standardised products such as warrants, the ongoing approval process can be as little as two days.
Traded on ASX
Approved products and issuers are which are admitted to trading status are entitled to use the ‘Traded on ASX’ emblem, which provides issuers with an instantly recognisable symbol to differentiate investment products traded on ASX from the non-listed products available.
Download the Traded on ASX emblem.