Markets Live: ASX climbs as banks edge higher

Markets Live: ASX climbs as banks edge higher

Offshore Technology International -

The Australian Securities Exchange has tightened its listing rules to clamp down on companies over-hyping customer contracts and force the disclosure of past misconduct by directors, following scandals at Big Un and GetSwift that cost investors hundreds of millions of dollars.
The changes come after The Australian Financial Review investigations into technology companies Big Un and GetSwift revealed investors in the company were kept in the dark about facts that could be considered materially important.
In a compliance update dispatched late last week, the ASX firmed up its guidelines to stamp out the over-exaggeration of gains from customer contracts and also announced immediate changes to rules relating to disclosures of past misdemeanours of individuals seeking directorships or control of listed companies.
The exchange said it would crack down on companies that announce contracts with major global customers that lack details; that don't mention the contract is conditional or subject to a trial period; that include loosely derived revenue projections; that aren't updated if the contract is terminated; or are presented as material or with other 'superlatives' when they are not.

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