On 26 June 2025, ASX introduced a new close review procedure to be used when ASX has serious concerns about an entity’s willingness or ability to comply with ASX’s disclosure-related listing rules.
Under the procedure, ASX will apply additional scrutiny to an entity’s market announcements for a period of 6 months where that entity has seriously and repeatedly fallen short of the disclosure standards required of a listed entity. If ASX decides to initiate a close review period, following notification to and review of any submissions made by the entity, the commencement of the period will be announced to the market by ASX.
ASX will expect the entity to take appropriate steps to improve its disclosure practices during the close review period. If an entity remains subject to the close review procedure for a prolonged period of more than 12 months, ASX is likely to require the entity to ‘show cause’ why it should not be removed from the official list.
ASX’s normal processes for releasing market announcements are outlined in Guidance Note 14. Typically, the Market Announcements Office undertakes a high-level review of any announcement received, given the need for prompt release of market sensitive information.
The greater scrutiny of any announcement during a close review period will inevitably delay the release of the entity’s announcements to the market and the entity will need to make due allowance for this in its planning. In the case of a market sensitive announcement, this will require the entity to request a trading halt pending the completion of ASX’s review.
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