Updated ASX Guidance Note on trading policies

On 30 January 2015 the ASX released an updated version of Guidance Note 27 to assist entities in complying with their obligations under Listing Rules 12.9 to 12.12 regarding trading policies.

According to the accompanying media release, the updated guidance incorporates learnings from market developments since the last update in January 2012.  In particular, it makes it clear that the purpose of a share trading policy is not only to minimise the risk of insider trading, but also to avoid the appearance of insider trading and the reputational damage that it may cause.

Notably, the updated Guidance Note provides significantly more detail than its predecessor on the requirements under Listing Rules 12.9 to 12.12 so that listed entities can better understand their obligations and ensure that their trading policies are compliant.

In addition, where entities have discretion in relation to their trading policies, the updated Guidance Note offers detailed recommendations and examples on how entities can craft their trading policies so that they are well-aligned with the intent of the Listing Rules and appropriately protect against insider trading and reputational damage.

It is an opportune time for all listed entities to review their trading policies against the updated Guidance Note to ensure that they are not only compliant with Listing Rules 12.9 to 12.12, but also take into consideration the ASX’s new comments and recommendations. Lavan Legal regularly advises listed entities in this regard and can assist with a review of your entity’s trading policy or any other governance matters.

Disclaimer – the information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.