02/388 ASIC makes declaration in relation to Federation Group Limited
Thursday 24 October 2002
The Australian Securities and Investments Commission (ASIC) today made a determination that Federation Group Limited (Federation) may not rely on the reduced prospectus content rule for continuously quoted securities until 2 September 2003.
Federation is a Melbourne-based company which is primarily involved in the surf and skate clothing industry. Earlier this year, the company acquired intellectual property relating to the Hot Tuna and Xisle clothing brands and some associated retail outlets.
ASIC made the determination because it was concerned that the company failed to fully comply with its continuous disclosure obligations in relation to these acquisitions.
ASIC was also concerned that the company had not lodged its financial reports for the 2001/02 financial year within the time required under the law.
Section 713 provides reduced prospectus content rules for continuously quoted securities on the basis that where securities are listed, the continuous disclosure regime ensures that material information is being provided to investors on a continuous basis.
Where these obligations are not being met, ASIC has the power to prevent a company from relying on section 713.
'A listed company's ability to use the reduced prospectus content requirements is predicated upon them meeting their continuous disclosure obligations. We will be focusing on listed companies that do not meet their requirements', said ASIC's Director of Corporate Finance, Mr Richard Cockburn.
