ASIC today released guidance to facilitate foreign companies making offers of CHESS Depository Interests (CDIs) over their shares and options to investors in Australia.

Regulatory Guide 253 Fundraising: Facilitating offers of CHESS Depository Interests (RG 253) provides the market with certainty about how offers of CDIs over foreign shares and options are regulated under the Corporations Act 2001.

Accompanying RG 253, ASIC also today issued Class Order [CO 14/827] Offers of CHESS Depository Interests, which reflects current market practice, to ease the compliance burden for foreign companies as they will no longer need to approach ASIC for individual relief.

ASIC consulted on its guidance and relief in May 2014 (refer: 14-116MR).

ASIC Commissioner John Price said, 'Our new relief and guidance aim to encourage foreign companies to make equity offerings in Australia in a way that promotes investor understanding and confidence and gives certainty for foreign companies about how to comply with our disclosure framework.'

Download:

• RG 253
• Report 414 Response to submissions on CP 220 Fundraising: Facilitating offers of CHESS Depositary Interests (REP 414)
• CP 220
• Class Order [CO 14/827] Offers of CHESS Depository Interests
• Class Order [CO 14/828] Revocation of Class Order [CO 02/311] and Class Order [CO 02/316]
• Class Order [CO 14/829] Amendment of Class Order [CO 02/312]

Background

As a result of the new relief, Class Order [CO 02/311] CHESS Depositary Nominees Pty Ltd — CDIs and Class Order [CO 02/316] CHESS Depositary Nominees Pty Ltd — FDIs have been revoked, and Class Order [CO 02/312] Part 7.11, Division 4 financial products for ASTC has been amended.