18 May 2011

Ms Nisha Kaneyson
Lawyer - Investment Managers & Superannuation
Australian Securities & Investments Commission
GPO Box 9827
SYDNEY NSW 2001

Dear Ms Kaneyson

Infrastructure Entities - Consultation Paper 154

The Group of 100 (G100) is an organization of chief financial officers from Australia's largest business enterprises with the purpose of advancing Australia's financial competitiveness. The G100 is pleased to provide comments on Consultation Paper 154 (CP154) "Infrastructure Entities: Improving disclosure to retail investors – Further consultation".

As indicated in our submission on Consultation Paper 134, dated 9 July 2010, the G100 believes that disclosure requirements should be based on the principle of equal treatment for all companies, whether listed or not, that raise funds in public capital markets. Accordingly, the G100 does not support the proposals to develop a separate and additional reporting regime for infrastructure entities.

Under the Corporations Law, entities are required to present financial statements prepared in accordance with Australian Accounting Standards which present a true and fair view of their profit and loss and financial position. In addition, listed entities are subject to the ASX Listing Rules and the continuous disclosure regime. These requirements apply to all listed entities including infrastructure entities with the effect that all entities competing for funds from the public are treated equally. Introducing specific additional disclosures and a one-size-fits-all benchmark approach for infrastructure entities has the potential to distort the market place in which entities compete for finance. We do not believe that any group of entities should be singled out to comply with a set of benchmarks which are arbitrary in their selection, of questionable usefulness to retail investors and potentially counterproductive where an entity departs from a benchmark.

The G100 considers that:

• the regulatory guide is ambiguous as to how the benchmarks and disclosure requirements apply to initial investments and then to ongoing financial disclosure including the location of those disclosures. The practical application and compliance requirements are unclear at best, particularly for established entities;
  
  
• the benchmarks and disclosure requirements are arbitrary in nature and do not necessarily match those of internationally recognized accounting standards or other ASIC listing and offer document requirements. In addition, subsequent disclosure in an Annual Report may not be consistent with proposals in ASIC CP 150; and
  
  
• the requirement to disclose proprietary information will place Australian listed infrastructure companies at a disadvantage to international competitors and/or potential targets/acquirers.

Yours sincerely
Group of 100 Inc

Peter Lewis
National President