find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
Don't read a prospectus for the pictures

Don't read a prospectus for the pictures

Photos in a prospectus could be banned if proposals to overhaul the document are approved. The Australian Securities and Investments Commission (ASIC) announced Tuesday (12 April) that it plans…

Photos in a prospectus could be banned if proposals to overhaul the document are approved.

The Australian Securities and Investments Commission (ASIC) announced Tuesday (12 April) that it plans to make prospectuses easier for retail investors to use and improve the quality of information on the proposed business model and the associated risks.

ASIC's move comes after mounting criticisms that the information contained in a prospectus are too complex and hard to understand. Media mogul Kerry Stokes recently commented that he couldn't understand the information in the prospectus when selling his Seven Network to West Australian Newspapers.

Speaking to Lawyers Weekly, Clayton Utz partner Brendan Groves said changes to make prospectuses shorter and more focused on disclosure would be welcomed by lawyers and clients alike.

"Clients have often struggled with the complexity and length that goes into a prospectus," Groves said. "It will be a welcome development for the market to have ASIC provide guidance on how it believes issuers can provide more concise documentation."

ASIC has said that under its proposals, a prospectus would chiefly be a disclosure document, not a marketing tool for companies.

"First and foremost, a prospectus is a disclosure document aimed at informing investors," ASIC Commissioner and former Mallesons partner Belinda Gibson said. "Sales and marketing statements - and the extensive use of promotional photography - are secondary."

Under the proposals floated by ASIC, photos in a prospectus would be banned, except on the front cover. "There is a real tension between the fact that a prospectus is both a disclosure document regulated by the Corporations Act, but is also fundamentally a selling document," Groves said. He added that the proposal to ban photos within the document would "help investors focus on the fundamentals of their investment decision."

ASIC has also recommended that prior criminal convictions or personal bankruptcies or disciplinary actions taken against managers or key directors would also be disclosed.

"Any further disclosure that can be made to the market about the reputation or management of a company is a good thing," Groves said.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Don't read a prospectus for the pictures
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...