ASIC has released a consultation paper aimed at improving disclosure to retail investors by responsible entities of agribusiness schemes.

ASIC Commissioner, Mr Greg Medcraft, said recent turmoil in the agribusiness scheme sector had alerted the regulator to the need for uniform disclosure rules.

‘The changes we have proposed will ensure that retail investors are better informed about all agribusiness schemes and the risks associated with them,’ Mr Medcraft said.

ASIC is proposing a benchmark-based disclosure model for unlisted agribusiness schemes, against which the responsible entities must report. The ten proposed benchmarks focus on key issues such as fee models, the financial position of the responsible entity, arrangements around access to land, water and other licenses and related party arrangements.

Comments on the consultation paper are due by 31 May 2010, with ASIC proposing to release a regulatory guide in July 2010.

Further details are available at ASIC.