The Australian Securities and Investments Commission (ASIC) has launched a two-year pilot program intended to shorten the IPO process for companies listing on the Australian Securities Exchange (ASX) under the fast-track scheme.
Under the initiative, eligible companies – those anticipating a market capitalisation exceeding $100 million and not subject to ASX-imposed escrow – can confidentially submit a draft prospectus or product disclosure statement (PDS) to ASIC for review at least 14 days before official lodgement.
The goal is to accelerate the IPO timetable by limiting the need for extended exposure periods or post-lodgement amendments.
ASIC will also allow such companies to begin accepting applications from retail investors during the statutory seven-day exposure period. This marks a departure from previous restrictions under section 727 of the Corporations Act, although offers remain contingent on the completion of the exposure period before quotation and issuance.
ASIC chair Joe Longo said the changes reflect regulatory efforts to adapt to current capital market conditions and reinforce the relevance of public markets.
“Creating a more streamlined IPO process underscores our commitment to ensuring our public markets remain attractive to companies and investors,” he said. “Greater deal certainty for companies should help deliver more IPOs, which means more investment opportunities so companies can expand, increase jobs, and ultimately economic growth.”
He added that fewer listings and increased delistings have prompted the regulator to examine how the IPO process can be made more efficient without compromising disclosure standards.
The fast-track process does not alter ASIC’s enforcement capabilities. The regulator retains authority to extend exposure periods, issue stop orders, and monitor ongoing compliance. It also reserves the right to adjust or discontinue the pilot based on market response and effectiveness.
Separately, ASIC has released findings from its follow-up assessment of general insurers’ claims handling processes, particularly in the aftermath of the 2022 flooding events.
The review, which looked at implementation progress since the publication of Report 768, found that while insurers had strengthened oversight of builders and repair providers, similar oversight of independent experts such as engineers and hydrologists remained inconsistent.
ASIC noted that many insurers lacked formal procedures for evaluating the quality and reliability of expert reports used in claims determinations. In several cases, claims assessors – often without the necessary technical knowledge – were responsible for identifying errors or inconsistencies in specialist assessments.
The review also identified a tendency for insurers not to revisit expert advice after claims decisions had been finalised, increasing the likelihood of uncorrected inaccuracies.
ASIC has advised insurers to establish more structured oversight mechanisms and to enhance communication with policyholders, especially in situations involving cash settlements.
