Draft Corporations Legislation on Simple Corporate Bonds Released

The Treasurer has released an exposure draft of amendments to the Corporations Act 2001 (the exposure draft is titled the Corporations Amendment (Simple Corporate Bonds and Other Measures) Bill 2013). The proposed amendments are intended to streamline the regulatory requirements for issuing simple corporate bonds to retail investors.

Key reforms included in the draft Bill relate to: 

• the introduction of a streamlined two-part disclosure regime for offers of simple corporate bonds;

• the making of changes to civil liability provisions with respect to corporate bonds issued to retail investors; and

• clarification of the application of the defences in respect to misleading and deceptive statements and omissions in disclosure documents relating to corporate bonds issued to retail investors.

The Government says the measures form part of its commitment to develop a deep and liquid corporate bond market as announced in its Competitive and Sustainable Banking System Package. 

Comments and consultation is sought and the closing date for submissions is 15 February 2013. Click here for details. 

The full Draft Legislation and Draft Explanatory Memorandum are already available to subscribers in our LawOne Product. If you are not a subscriber and would like a trial do not hesitate to contact us so you can keep up with this and many other important Australian legislative developments.