Murray Goulburn to cop ASIC fine for disclosure breach

DAIRY processor Murray Goulburn Cooperative has agreed to pay a fine after failing to keep investors informed about a key corporate development.

It follows an investigation into the company’s continuous disclosure provisions by the corporate regulator, the Australian Securities and Investments Commission.

The settlement, which is subject to Federal Court approval, stems from the company’s failure to disclose market-sensitive information in a timely manner before an announcement on April 27 last year. Under the settlement, Murray Goulburn will agree to the civil contravention and the penalty court.

ASIC would likely seek a penalty of $650,000, Murray Goulburn said in a statement to shareholders yesterday.

“Listed entities must inform the market immediately when determined by the they become aware of circumstances that mean there will be material differences in market expectations of its earnings,” said ASIC commissioner Cathie Armour.

The commission did not allege that Murray Goulburn deliberately beached continuous disclosure obligations.

“This settlement is in the best interests of Murray Goulburn as we continue to focus on our objective of supporting farmer suppliers,” chairman John Spark said.