ASX to focus on pattern of problematic behaviour in listed entities

ASX has told listed companies it intends to focus on repeated conduct to ramp up a company's share price through inappropriate use of the market announcements platform.

In its Listed Entity Supervision Report 2026, ASX noted over the last 18 to 24 months it has been actively reducing the number and type of announcements that are referred to it prior to release.

"We have observed that when we intervene to address issues with an announcement prior to release, there is no broader educational effect if we identify and correct a material issue, and it can make listed entities reliant on our intervention to address simple issues that they should be able to address themselves," ASX said.

"It can also lead to criticism from listed entities - which in some cases is fair - that the issues raised are not always sufficiently serious to warrant our intervention."

ASX also added it can result in unproductive engagement where the merits of particular words and phrases are debated, rather than focusing on market harm.

To tackle this, ASX said it is in the process of shifting to a supervisory model where it focuses more on ongoing patterns of behaviour rather than individual announcements, except when a defective announcement has created a potential false market after it is released.

While it said it will continue to comment on announcements in limited circumstances, in normal situations it intends to focus on the entity's behaviour over time and the market's reaction to its announcements after release.

"This will likely result in less pre-release interaction with listed entities but more post-release follow up," it said.

Problematic pattern of behaviour includes the timing of the release of the announcements, the number of announcements released, whether the entity has accurately characterised the sensitivity of the announcements, whether announcements contain any new information and whether ASX has previously raised concerns about the company's announcements.

ASX said its concerns are heightened when an entity's disclosure practices appear to be aimed at supporting a placement price, maintaining post-raising trading levels, or inducing speculative interest rather than informing the market of material developments.

"ASX expects disclosure practices to be supported by robust assessment and escalation procedures and that announcements are not used to deliberately 'manage' share price outcomes that are divorced from information concerning the entity that is complete, accurate and not misleading," it said.

It intends to also conduct a review of post-admission disclosures of listed entities providing investors exposure to private credit.

ASX Supervision group executive Lucinda McCann said: "Our engagement will be risk-based, visible and transparent and so we're letting companies know what we will be focusing on and how we will respond where we have concerns."

"Being more transparent on our priorities gives listed companies and their advisers more certainty on where we will focus our attention, supporting more efficient engagement and allowing listed companies to keep operating with confidence," she said.

ASX has also expanded its market education program, reinstating regular briefing sessions and updates for company secretaries to improve understanding of listing rule issues and supervisory expectations.