ASIC has updated its guidance on naming conventions
refer 22-325MROpens in new window
for licensed Australian exchanges that admit exchange traded products (ETPs) following a public consultation in January 2022.
In summary, ASIC has divided the naming conventions into two levels of labelling:
- primary labels (‘ETF’ and ‘Structured Product’) based on product type (ASIC has retired the existing ‘Managed Fund’ label). Primary labels are intended to be applied to all ETPs. ASIC expects responsible entities of products that transition to the dual access ETPs structure to inform their existing members of this and make them aware that on market and off-market entry and exit mechanisms are now available for the product; and
- secondary labels (‘Active’ and ‘Complex’) for products with specific risks or strategies. Secondary labels apply in addition to primary labels, but only for ETPs that meet specific criteria.
ASIC has clarified that the labels should be applied to the trading name of a product. The industry transition to updated ETP naming conventions will be overseen by licensed exchanges. ASIC understands that the exchanges need time to develop plans for the transition in detail, including identification of any areas where further consultation with industry or work with data vendors is required. ASIC expects the exchanges to provide updates to the market about expected timeframes as they progress this work.
ASIC has indicated that a transition period of at least 12 months (from a defined start date) will be provided to the industry so that updates can coincide with periodic rollovers of the PDS. Potential impacts include changes to Issuers of ETP’s relevant forms, letters and statements.
Should you wish to discuss any further please contact our Head of ETP’s Raki Amaranath via
raki.amaranath@linkgroup.com
ASIC Greater focus - Annual Report
Just a reminder in relation to keeping shareholders and prospective investors informed, ASIC is calling on company directors to ensure material business risks are adequately disclosed in annual reports,
refer to 22-332MROpens in new window
released on 30 November.
ASIC Commissioner Sean Hughes stated that the operating and financial review ‘helps to inform the decision-making of investors by disclosing material business risks that may affect the achievement of a listed entity’s strategies and prospects’.