Today, the Government has published its response to Dr Kevin Lewis' independent review of the 2021 Amendments to Australia's continuous disclosure laws.
The Government has accepted the primary recommendations of Dr. Lewis' review.
The overarching finding of the report by Dr. Lewis highlighted that the two‑year review period provided for in section 1683B of the Corporations Act was not long enough to draw meaningful evidence‑based conclusions about the impact of the 2021 Amendments on many of the matters mentioned in the Terms of Reference.
The review was able to make recommendations in relation to two primary matters which the Government accepted.
- That the 2021 Amendments be repealed in respect of enforcement action by ASIC
- That the 2021 Amendments be retained for the time being in respect of private litigants
The Albanese Government is committed to ensuring that the integrity and transparency of Australia's capital markets is maintained. Continuous disclosure laws promote the timely release of market‑sensitive information which is essential for investors to make informed decisions.
It is vital ASIC is able to pursue breaches of continuous disclosure laws expeditiously and efficiently to promote market behaviour that makes Australia's capital markets more attractive.
The Government has also noted Dr Lewis' observation that the Government should reconsider the appropriateness of retaining the 2021 Amendments for private litigants should evidence emerge that it is having a negative effect on disclosure practices.
The release of the Government response today satisfies the requirements in 1683B of the Corporations Act for a review to be conducted and means that the 2021 Amendments to the continuous disclosure regime remain in force.
A copy of the review report, non‑confidential submissions and the Government's response which covers additional recommendations are available on the Treasury website.
