Australian Securities Agency Updates Guidance for Employee Ownership Plans

The Australian Securities & Investments Commission (ASIC) issued new guidance designed "to better facilitate employee incentive schemes and to reduce the red tape associated with notifying ASIC." The update includes different relief measures for public and for closely held companies. ASIC Commissioner John Price said, "ASIC has been able to provide more relief for unlisted companies than has been given in the past. However, given there are fewer regulatory reporting and compliance obligations applying to unlisted bodies, and no readily available market price for their financial products, our class order relief is somewhat more restricted than for listed bodies."

The new guidance anticipates related work by the Australian Tax Office and follows an announcement by the government of Tony Abbott that it will work to promote employee ownership in Australia.