10/02/2014 - 11:16

Diploma slugged with ASIC fine

10/02/2014 - 11:16

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Construction and development firm Diploma Group has been fined by the corporate watchdog for failing to comply with its continuous disclosure obligations.

Diploma slugged with ASIC fine
Diploma chief executive Nick Di Latte.

Construction and development firm Diploma Group has been fined by the corporate watchdog for failing to comply with its continuous disclosure obligations.

Diploma paid a $33,000 penalty after an investigation by the Australian Securities and Investments Commission into the company's announcements to the Australian Securities Exchange.

Diploma entered into a contract in December 2012 for the sale of a property at 69 Adelaide Terrace, East Perth, for $4.8 million.

The contract was subject to two conditions – due diligence and syndicate funding approval, and development approval.

Diploma did not tell the market at the time that it had entered into the contract, instead waiting until July 2013 to announce the settlement of the contract.

ASIC alleged that Diploma was in breach of the Corporations Act by failing to inform the market of its entry into the contract for the sale of the property, subject to the two conditions.

Diploma has since paid the penalty but the Corporations Act provides that compliance with infringement notices is not an admission of guilt or liability.

Diploma's compliance with the infringement notice means it is not regarded as having contravened the Corporations Act.

AISC commissioner John Price said continuous disclosure was a cornerstone of market integrity.

"It is essential for maintaining fair and efficient markets and is critical for investors looking to make confident and informed decisions," he said.

"We set a high standard in this space for good reason and on this occasion Diploma has failed to meet that standard."

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