In June, 2009 The Australian Securities and Investments Commission (ASIC) released Regulatory Guide 198 (RG198)Unlisted Disclosing Entities: Continuous Disclosing Obligations. This guide applies to Rivwest Finance Ltd. The guide sets out ASIC’s preferred best practice ways of ensuring investors are updated in a timely and efficient manner for material information.
As the prospectus is issued annually, it would otherwise be up to one year for investors to be notified of material events or circumstances relevant to their investment decisions.
Examples of material events include a material change in previously released forecasts, or changes to values of underlying assets; changes to the status or terms of debt funding; breaches of loan covenants; the appointment of an external administrator; suspension of debenture withdrawal requests and various disclosures relating to the benchmarks (Section D - pages 5 to 12 ).
The present system of continuous disclosure involves Rivwest providing Investors with a prospectus that has been lodged with both the Trustee and with ASIC for an exposure period before coming into force; issuing a supplementary or replacement prospectus should new material information come to hand; lodging monthly reports with the Trustee and quarterly reports with ASIC which includes benchmark compliance assurances and various other matters; the lodgement of audited annual accounts with ASIC and the Trustee as well as the lodgement of six monthly accounts and reports. Rivwest also has various reports and covenants with similar lodgement requirements with our Bankers.
RG198 provides for an alternative system of notifying investors via the fixed term investment issuer’s website. Rivwest Finance Ltd has not adopted this alternative. An examination of existing fix term investment holders indicates there would be limited numbers with access to our website (due to age and locations).
Rivwest is fortunate in never having a matter of material importance that would require notification to investors, however it is the policy of Rivwest to notify each investor should the need arise, by the same means as is presently used to notify investors of an impending maturing investment. The policy of lodgement of reports as outlined above will also continue.