Stop orders

A stop order is an administrative mechanism that allows ASIC to prevent offers being made under a disclosure document where we believe any of the following situations exist:

  • the disclosure document contains a misleading or deceptive statement
  • the disclosure document contains an omission of information required to be provided under the legislation, or
  • a new circumstance has arisen since the disclosure document was lodged.

To use a stop order, we must also believe that the situation is materially adverse from the point of view of the investor. For more information see Regulatory Guide 254 Offering securities under a disclosure document (RG 254).

If we impose a stop order on your disclosure document, your company is not allowed to offer, issue, sell or transfer securities offered under the disclosure document while that order is in force. An interim stop order may be made for up to 21 days, during which time a hearing must be held to give your company a chance to put its views to an independent delegate. After the hearing we may lift the interim stop order or place a final stop order on the disclosure document.

More information about how we conduct administrative hearings

What's new

Industry funding

ASIC has released its Cost Recovery Implementation Statement (CRIS), which includes estimated costs for ASIC’s 2017-18 regulatory activities. 6 October 17-334MR

Initial coin offerings

We have released guidance to help issuers of initial coin offerings (ICOs) consider their legal obligations when offering coins or tokens. 17-325MR. 28 September

Crowd-sourced funding by public companies

We have released guidance for public companies and crowd-funding platform operators to support them in using the new crowd-sourced funding regime, which commences on 29 September. 17-321MR. 21 September

ASIC reports on how investors decide to invest in IPOs, 17-287MR, 31 August

More releases on fundraising

Last updated: 20/10/2014 12:00