The ADLS Commercial Law Committee, led by Frank Chan, has called for the Financial Markets Conduct Bill to be improved in three main areas.

In submissions to the Commerce Select Committee, the ADLS has highlighted the high compliance costs faced by smaller businesses. Smaller issuers will likely find the proposed carve-out from the disclosure regime of limited value. The submissions call for greater scope for small capital raisings, along the lines of changes recently made to US securities laws.

The submissions also advocate that the FMA’s call-in power and the FMA’s offer document lodgement process both require greater procedural certainty.

More certainty is also sought in relation to the scope of the liability for both civil action and criminal penalties for those involved in investment offers. (see PDF attachment)