ASIC Chair warns complex rules stifle Australian IPOs
Outgoing ASIC Chair Joe Longo says Australia must overhaul its complex regulatory architecture to revive a dwindling IPO pipeline and attract foreign capital. He warns that the 3,300-page Corporations Act has become impenetrable and is currently deterring new startups from listing.
Australia must overhaul its 3,300-page Corporations Act to revive a stagnant IPO pipeline and attract global capital. Outgoing regulator chief Joe Longo warned that "impenetrable" legislation currently stifles startups and deters new public listings. Investors face a market where regulatory complexity has driven quarterly IPO volumes to just $11 million, a fraction of previous peaks.
### Why Complexity Is Killing the IPO Pipeline The Australian Corporations Act has expanded to a length that bankers and lawyers describe as overly burdensome. ASX LTD has seen a sharp decline in activity, with first-quarter IPO proceeds falling from $542.2 million in 2021 to $11 million. This represents one of the lowest levels of capital raising since the 2008 global financial crisis, according to LONDON STOCK EXCHANGE GROUP data.
