The Deputy Prime Minister and Treasurer has released a discussion paper regarding proposals aimed at developing the Australian retail corporate bond market by streamlining disclosure and liability requirements under the Corporations Act 2001.
The paper invites discussion on the proposition that the retail corporate bond disclosure and liability regime should facilitate a sustainable corporate bond market by:
- Reducing the regulatory burden on/barriers to issuance facing potential issuers while maintaining appropriate investor protection;
- Ensuring that investors are made aware of the key features and risks associated with buying a particular bond from a particular company (noting that bonds will be made available to both existing and new investors in the company), while reducing the complexity of prospectuses and making them easier for investors to understand; and
- Ensuring that there is an appropriate liability regime in place which balances investor protection against ensuring that directors are not unduly burdened.