Goldman Sachs Australia has signed an enforceable undertaking (EU) with the Australian Securities and Investments Commission (ASIC) to revamp book-build messaging controls in equity capital market transactions.
The move follows an investigation by the regulator into a block trade transaction carried out on 23 November 2015 by the company. The transaction was related to shares in Healthscope.
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The watchdog said that it had concerns about certain representations made by the company to investors regarding the minimum demand level.
The EU requires the company to conduct an internal review of its policies, systems, and training, as well as monitor staff associated with equity capital market transactions.
The company will also have to take remedial measures for identified lapses. Besides, a senior company executive will have to provide an attestation to the regulator to ensure that the controls address the concerns.
At the same time, the company will be required to make a community benefit payment of $500,000.
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By GlobalDataASIC commissioner Cathie Armour said: “This court enforceable undertaking reinforces our focus on intermediary conduct and standards in capital raising transactions. Investors need to have confidence that they are being provided with accurate information in the course of a bookbuild or underwriting process.”
