Regulatory Guide 228 - Prospectuses: Effective disclosure for retail investors CPD
This guide is for issuers and advisers on how to word and present prospectuses and other documents in a ‘clear, concise and effective’ manner.
This guide also sets out:
• ASIC’s guidance about how to prepare prospectuses that satisfy the content requirement in s710 of the Corporations Act 2001 (Corporations Act).
• ASIC’s guidance on how to word and present prospectuses in a ‘clear, concise and effective’ manner.
• ASIC’s guidance to issuers and their advisers on how to satisfy the content requirement for prospectuses.
ASIC’s guidance is general rather than prescriptive because the Corporations Act places responsibility on issuers to comply with the disclosure requirements. It may also be relevant for other disclosure that requires shareholders to make an investment decision.
Your prospectus must be worded and presented in a ‘clear, concise and effective’ manner. ASIC suggests various communication tools to help you comply with this requirement. They also give guidance on how you can make your prospectus as short as possible and use incorporation by reference.
You should use an investment overview to highlight key information to help retail investors make informed investment decisions. Guidance on what information should be in your investment overview and how you should present the information is provided.