ASIC simplifies guidance to improve capital raising activity

ASIC is simplifying the sell-side regulatory guidance in a move to spike capital raising activity, in line with its simplification effort which commenced in September 2025.

The proposed revamp of Regulatory Guide 264 Sell-Side Research (RG 264) is in response to industry feedback to seek clearer and less prescriptive guidance to encourage more research to support capital raising activity. The change will see the 42-page guidance shrinking to just eight, under a new principles-based proposal by ASIC.

Sell-side research is prepared by Australian financial services licensees such as investment banks and stockbrokers to help clients make investment decisions including about upcoming initial public offerings (IPOs), ASIC said.

ASIC believes the updates will enable greater research analyst input into the IPO process, whilst requiring licensees to have effective arrangements to manage conflicts of interest, inside information and to preserve the independence of research.

ASIC is seeking feedback on the changes, and the consultation is open until August 21.

The market regulator is seeking input on whether the proposed guidance is sufficiently clear and if it reflects industry practice in managing risks associated with sell-side research.

At the same time, ASIC is seeking feedback on issues not proposed to change, including the presentation of valuation information in Investor Education Reports (IER), and fact checking of draft IER by corporate advisory teams.

The review of RG 264 forms part of its response to feedback received from the discussion paper released in 2025.

"In response, we are proposing to simplify RG 264 by reducing prescription and adopting a more principles-based approach," ASIC said.