Australia Securities Lending and Borrowing Disclosure Requirements Add Unnecessary Market Complexities, Says ASLA

Securities lending intermediaries have been advised by the Australian Securities and Investments Commission (ASIC) that they must file Substantial Shareholder Notices (SSNs) if they are processing parcels that are greater than 5% of a companys listed capital.
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Securities lending intermediaries have been advised by the Australian Securities and Investments Commission (ASIC) that they must file Substantial Shareholder Notices (SSNs) if they are processing parcels that are greater than 5% of a companys listed capital.

Under the terms of ASICs guidance, which clarified disclosures for the industry in a report that has been ongoing since August 2009, intermediaries such as prime brokers will be required to file SSNs along with beneficial owners and the ultimate end user. Requiring this level of disclosure for intermediaries could cause confusion to the market, says Peter Martin, co-chairman of the Australian Securities Lending Association (ASLA) and back-office manager at State Street.

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