Submission to ASIC - Facilitating equity capital raising

27 March 2009

Ms Jane Eccleston
Senior Manager – Corporations
Australian Securities and Investments Commission
GPO Box 9827
SYDNEY NSW 2001

Dear Ms Eccleston

Facilitating equity capital raising

The Group of 100 (G100) is an organization of chief financial officers from Australia’s largest business enterprises with a purpose of advancing Australia’s financial competitiveness.

The G100 is pleased to provide comments on the proposals to facilitate equity capital raising and participation by retail investors and supports the efforts by ASIC in response to changed market conditions by removing regulatory impediments to capital raisings.

Modifying the maximum 5-day suspension rule
The G100 supports the modification of the rule to provide greater flexibility on a case-by-case basis. We favour this approach rather than mandating a specific number of days because it enables the facts and circumstances of each case to be taken into account.
Broadening the takeovers exception for rights issues
The G100 supports these proposals in the circumstances where the rights issue has been available to all shareholders. We consider that providing a class order is an appropriate approach. However, in view of the potential implications for change of control, we believe that ASIC should set out its policy in respect of determining whether to seek a declaration of unacceptable circumstances from the Takeovers Panel.
Broadening the takeovers exception for dividend reinvestment plans
The G100 supports these proposals.

Yours sincerely

Tony Reeves
National President