Australia’s securities regulator ASIC announced Thursday it will slash its sell-side research guidance from 42 pages down to eight, shifting to a principles-based framework aimed at boosting analyst coverage for IPOs and capital raisings. The streamlined rules maintain strict guardrails: analyst compensation cannot link to advisory fees, research teams must remain separated from deal-making desks, and analysts wall-crossed on live transactions cannot publish until deals close.
The move comes as ASIC tackles Australia’s shrinking public markets through multiple initiatives over the past 18 months, including a fast-track IPO trial launched in June 2025 and breaking the ASX’s listing monopoly by approving Cboe for IPOs in late 2025. The timing matters for firms like BlackBull Markets, currently running pre-listing roadshows with major banks for potential Sydney-Wellington listings.
ASIC’s approach mirrors the UK’s recent research rule overhaul, where the FCA proposed rebundling research and execution payments in April 2024 to reverse MiFID II unbundling requirements.
FXnCO Insight
Brokers and research providers should prepare compliance frameworks now for lighter-touch rules that may increase IPO analyst access while maintaining strict conflict barriers.
Source: Finance Magnates