Handling confidential, price sensitive information: principles of good practice

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.