The Motley Fool

GetSwift Ltd and Big Un Ltd act as catalysts for new rulings to protect investors

A raft of issues with tech start-ups has led to the ASX moving to tighten its disclosure and compliance obligations to give investors another layer of protection – further complicating the process undertaken by companies seeking to list publicly.

The move comes after cloud-based start-up GetSwift Ltd (ASX: GSW) faced allegations it failed to update the market over the loss of significant contracts and issues faced with media and video company BIG Un Ltd (ASX: BIG) – currently suspended from trading while its finances are investigated.

The ASX maintains “recently there has been a number of incidents” where disclosures about contractual arrangements with customers had “fallen short of required standards”.

The ASX-imposed changes include the stipulation an announcement must contain “sufficient detail for investors or their professional advisers to understand its ramifications and to assess its impact on the price or value of the entity’s securities”.

The customer’s name, contract term and any conditions of the contract will also have to be included with the ASX warning it would “not hesitate” to suspend entities who issued “inadequate or misleading” disclosures.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!