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ASX restricts publication of broker and analyst research reports

ASX has recently updated its Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 – 3.1B in relation to the publication of broker and analyst research reports.

ASX reports that it has recently experienced a number of issues with listed entities commissioning and publicising broker and analyst research reports which include objectionable material that the entity itself could not publish. These include reports with:

  • Information about exploration results, mineral resources, ore reserves or a production target that does not comply with the JORC Code and/or Chapter 5 of the ASX Listing Rules; and
  • An estimate of earnings or other forward looking financial information that does not meet the expectations for such information outlined in ASIC Regulatory Guide 170 Prospective financial information.

Revised ASX Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 – 3.1B now provides that listed entities should not publish the following on the ASX market announcements platform:

  • A broker or analyst research report about the entity; or
  • An announcement about the issue of, containing extracts from, or referring or including hyperlinks to, such a report.

Any entity wishing to publish or refer to a broker or analyst research report in its ASX announcements should first receive clearance from ASX and should be able to demonstrate to ASX why the entity considers the information to be market sensitive.

If an entity publishes such a report or announcement on the ASX market announcements platform without obtaining prior clearance from ASX, ASX may require the entity to make a further announcement addressing ASX’s concerns. If a report is released which contains material that ASX considers objectionable, ASX may also require the entity to publish an announcement withdrawing or retracting the objectionable material and advising investors not to make any investment decision based on it.

This article was written by Andrew Shearwood, Partner and David Naoum, Special Counsel.

Andrew Shearwood

P: +61 8 9420 1535

E: ashearwood@hwle.com.au

David Naoum

P: +61 8 6214 1802

E: dnaoum@hwle.com.au

Important Disclaimer: The material contained in this publication is of a general nature only and is based on the law as of the date of publication. It is not, nor is intended to be legal advice. If you wish to take any action based on the content of this publication we recommend that you seek professional advice.