Acclime Corporate Snapshot – December 2024.

Acclime Corporate Snapshot provides you with an overview of current corporate governance matters, including regulatory changes, trends, and other important issues.

To discuss how these may affect you, please contact us on 03 8689 9997.

Australia passes its first cyber-security act

In a bipartisan moment, the Federal Parliament has passed a package of laws giving effect to Australia’s 2023–2030 Cyber Security Strategy. The various components of these new laws will come into effect immediately and over the next 6–12 months.

The legislation addresses particular focuses of the intelligence and cyber-security communities, including malware, foreign interference, critical infrastructure threats, and data breaches.

You can read more about the new laws in this informative piece from Ashurst.

ASIC turns to watching the watchers

ASIC has announced it will conduct surveillance on auditors’ compliance with independence and conflicts of interest requirements.

The announcement came amid the corporate regulator’s annual findings on financial reporting and audit surveillance for the 12 months to 30 June. The ASIC report makes a feature of its enforcement work against registered company auditors.

The new focus on auditors was made known to the heads of audit firms by letter from ASIC.

There are details of the year’s findings, and more about the surveillance initiative, in ASIC’s media release.

Mandatory mergers: Managed manoeuvres, or manacled markets?

A mandatory and suspensory administrative merger regime will now cover all transactions completing on or after 1 January 2026, replacing Australia’s existing merger review framework. From this date, all acquisitions where the ‘control’ and ‘monetary’ thresholds are met must be notified to the ACCC and cannot complete without its clearance.

The new regime sailed through both houses without controversy and, at time of writing, is awaiting royal assent.

Because the new rules will affect deals completing on or after 1 January, even if signed before that date, businesses should already be looking closely at their timelines to avoid having to restart the process under the new regime mid-way through a transaction. The new scheme will affect a wider spectrum of transactions, will operate more strictly on notification and competition, and will enforce statutory deadlines for ACCC determinations. In addition, scope for Tribunal review will be narrowed.

Important details about the new merger regime are still unclear, but to catch up to current developments, try this analysis from Allens.

Clearing, settlement and issuer services pricing

Back in September, ASX released a consultation paper proposing a new pricing policy for its clearing, settlement and issuer services, to take effect from 1 January 2025. The consultation affects all listed entities, as it will change the way issuer services provided by ASX Settlement through CHESS (for example, CHESS statements and CHESS messages) are priced. The paper proposed a cost recovery model, using rebates to customers in cases of excess revenue.

Since the release of the consultation paper, ASX has held two industry webinars to discuss the proposed change. The submission period has now closed, and given the intended commencement date, we should know within days whether the plan will be implemented as proposed.

ASIC’s focus areas for 31 December financial reports

The end of the calendar year is crowded with lists: the best books, movies and podcasts… and ASIC has traditionally chipped in with a more sober contribution—the must-haves and must-dos for end-of-calendar-year financial reporting.

This year, the highlights are:

• Impairment and asset values
• Provisions
• Events after year end and before completing the financial report, and
• Disclosures in the financial report and Operating and Financial Review (OFR).

And that’s not all, of course. We leave you with a reminder from ASIC commissioner Kate O’Rourke: “While these areas are emphasised, ASIC expects all reporting entities to ensure the reports are complete, accurate and informative.”

Enjoy your break.

Sources of information: Allens, Ashurst, Australian Securities Exchange Ltd (ASX), Australian Securities and Investments Commission (ASIC).

Disclaimer: Acclime Corporate Snapshot is only intended to provide a general overview on matters of interest. It is not intended to be comprehensive and is not legal advice. Acclime Australia attempts to ensure that content is current but we do not guarantee its currency. You should seek legal and/or professional advice before acting or relying on any content.