ASIC today released a consultation paper aimed at improving disclosure to retail investors by infrastructure entities, including listed and unlisted companies and registered managed investment schemes.

ASIC Commissioner, Mr Greg Medcraft, said ASIC had undertaken a review of the infrastructure sector and considers retail investors will benefit from improved and more consistent disclosure in this sector.

ASIC is proposing a benchmark-based disclosure model for infrastructure entities, against which they must report. The proposed benchmarks focus on key issues including corporate structure and management, funding, assumptions in models and sensitivity analysis of those assumptions, valuation, distribution, withdrawal and diversification.

‘The changes proposed aim to enhance retail investor understanding of the key characteristics and risks associated with investment in an infrastructure entity,’ Mr Medcraft said.

Comments on the consultation paper are due by 30 June 2010, with ASIC proposing to release a regulatory guide in September 2010.

Further details are available at ASIC.