The Australasian Investor Relations Association (AIRA) is proposing a “fast track” proposal to speed up the release to market of important financial results announcements and other price sensitive information during profit reporting seasons.

The initiative arises because more listed entities are issuing profit results, annual reports and other important performance announcements through the ASX before daily share trading commences.

AIRA’s Chief Executive Ian Matheson said today: “We have had a preliminary conversation with the Australian Securities Exchange about developing a fast track system to operate during interim and final results periods because of concerns that releases could be delayed by the large amount of other, non-sensitive announcements.

“A poll of our members shows that 69% of respondents are lodging their financial results to the ASX between 7:30am and 8:30am to give stock market analysts and investors more time to assess the results before trading commences. This is a critical period of the day, and some companies experienced delays in the latest reporting season.

“The survey also showed that 90% of those surveyed received acknowledgement of receipt back from the ASX within 20 minutes. The larger companies – particularly those in the ASX50 – attract considerable analyst coverage, and it’s important the analysts’ can provide informed responses to their clients as soon as possible before the market opens. That makes for a more orderly opening and is in the best interests of all investors.”

A fast track system would prioritize ASX releases so that the most time sensitive ones were made public more quickly. Less sensitive releases on issues such as substantial shareholdings, minor capital changes and change of directors’ interests would be sidelined until the peak period ebbed.

AIRA’s survey also found that, apart from more companies reporting first thing in the morning, larger ones were also releasing their financial results earlier in reporting seasons. Some 21% said they had already advanced their lodgment date or planned to do so next year. Also, 43% said they had changed their timetable or would do so next year to include release of their annual report with other financial announcements. One benefit of this is that it gives proxy advisers a longer lead time to research their recommendations on voting.

To read the full media release please click here. 

This media release was directly sourced from the Australasian Investor Relations Association (AIRA) website here.