ASIC has released Consultation Paper 151 Debt securities: modifying the naming provisions and advertising requirements (CP 151 ) which sets out proposals to revise ASIC’s policy on how debt securities can be described in offer documents and the preferred form of advertising for these instruments.

ASIC’s proposals include:

• introducing class order relief to provide for a new class of debt security (in addition to the current classes of ‘debenture’, ‘mortgage debenture’ and ‘unsecured note’) called a ‘note’, providing certain conditions (including sufficiency of security) are met; and
• revising ASIC’s advertising standards for offers of debt securities and interests in mortgage schemes, in particular the standards relating to risk of loss and comparing these types of securities with bank deposits.

Comments close on 6 May 2011.