The Hon Wayne Swan MP has released an exposure draft of amendments to the Corporations Act 2001 to streamline the regulatory requirements for issuing simple corporate bonds to retail investors. The reforms:
- introduce a streamlined two-part disclosure regime for offers of simple corporate bonds;
- make changes to the civil liability provisions in respect to corporate bonds issued to retail investors; and
- clarify 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.
These measures form part of the Government's commitment to develop a deep and liquid corporate bond market as announced in the Government's Competitive and Sustainable Banking System Package Government's Competitive and Sustainable Banking System Package.
The Government has previously sought public comment on this policy through a discussion paper released in December 2011 entitled Development of the Retail Corporate Bond Market: Streamlining Disclosure and Liability Requirements.