Handling confidential, price sensitive information: principles of good practice

Articles Written by John Keeves (Partner)

Chartered Secretaries Australia and the Australasian Investor Relations Association have issued guidance on handling confidential, price-sensitive information. This is in response to ASIC's consultation on this topic (Consultation Paper 128).

In summary, companies should:

  • have systems to protect confidential, price-sensitive information
  • maintain an insider list when conducting a confidential, price-sensitive transaction
  • ensure that directors, executives and employees are aware of their confidentiality obligations
  • enter into confidentiality agreements with advisers and service providers (and potential advisers who are involved in "beauty" parades) and ensure that they have policies and practices in place in relation to confidential, price-sensitive information.

It is desirable for companies to be aware of the details of any market soundings of potential investors.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

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