Letter to the Editor: ASIC rule changes

THE Australian Securities and Investments Commission’s rule changes on forward-looking statements for miners have left many unhappy – for good reason.
Letter to the Editor: ASIC rule changes Letter to the Editor: ASIC rule changes Letter to the Editor: ASIC rule changes Letter to the Editor: ASIC rule changes Letter to the Editor: ASIC rule changes

Mike Young

MiningNews.Net

The following letter was in response to yesterday's story on a predicted increase in private equity buying...

 

Private equity deals will also be boosted by ASIC's new and completely anachronistic rules preventing continuous disclosure.

Previously, smaller companies could release scoping study level data then use that momentum to raise money in the retail space. 

ASIC have put a stop to that, ostensibly because they believe in their far-seeing wisdom, it will protect small investors from rogue elements.

This then prevents an appreciation of share price and value that normally accompanies good news.

Now companies with early stage forward looking data will have to 'open the Kimono' to the PE groups without disclosing ANYTHING to the retail punters.

So ASIC have NOT helped the retail investors, have created a situation where a company cannot increase its value, and assisted PE groups to buy companies and their assets at artificially depressed prices.

Views are my own and shared by many.

Mike Young

Managing director, Vimy Resources

You can read more about the ASIC rule changes here.

Letters to the editor are always welcome by emailing editor@miningnews.net or kristie.batten@aspermont.com