Share Purchase Plan Level should be Increased Back |
 In August, SDIA made an application to ASIC to increase the level of share purchase plans (SPPs).
Under ASIC class orders, the current value of shares that can be offered to shareholders without a prospectus is $5,000pa.
In support of the application we made the following points:
o The rise in the value of the market since the last increase in 2002 justifies a substantial increase in SPPs
o The level of share ownership in Australia is at a high level
o SMSFs are a growing vehicle to build retirement savings, and require substantial investment options, and
o SPPs offer a low-cost capital raising option for companies
In October, ASIC replied that they will undertake a consultation process in 2009 to consider whether the current level should be increased.
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