Stop orders

A stop order is an administrative mechanism that allows ASIC to prevent offers being made under a disclosure document where we believe any of the following situations exist:

  • the disclosure document contains a misleading or deceptive statement
  • the disclosure document contains an omission of information required to be provided under the legislation, or
  • a new circumstance has arisen since the disclosure document was lodged.

To use a stop order, we must also believe that the situation is materially adverse from the point of view of the investor. For more information see Regulatory Guide 254 Offering securities under a disclosure document (RG 254).

If we impose a stop order on your disclosure document, your company is not allowed to offer, issue, sell or transfer securities offered under the disclosure document while that order is in force. An interim stop order may be made for up to 21 days, during which time a hearing must be held to give your company a chance to put its views to an independent delegate. After the hearing we may lift the interim stop order or place a final stop order on the disclosure document.

More information about how we conduct administrative hearings

What's new

ASIC updates guidance as crowd-sourced funding regime extends to proprietary companies

ASIC has released updated regulatory guides to coincide with the extension of the crowd-sourced funding (CSF) framework to eligible proprietary companies. This starts on 19 October 2018.

Disclosure documents can now be lodged electronically

On 29 June 2018, ASIC approved an instrument to facilitate the electronic lodgement of documents that have historically been provided to the Corporations team in hard copy.

ASIC takes action on misleading or deceptive conduct in ICOs

ASIC is focused on misleading or deceptive conduct in the marketing and selling of digital or virtual tokens via initial coin offerings (ICOs).

More releases on fundraising

Last updated: 20/10/2014 12:00