1. www.kinshipdigital.com
Case Study: ASX Compliance Monitoring
- Crowe Horwath
Background
Crowe Horwath Australia is a listed company on the Australian Stock
Exchange (ASX). Part of the regulatory listing requirements of the ASX is
ASX Guidance Note 8 (GN8). It requires companies to monitor any
“potential market-sensitive information” which may appear in social
media. Companies must practise social media monitoring of their
company and directors, in order to identify market-sensitive information
that could influence their share price. Crowe Horwath contracted
KINSHIP digital to perform this service.
Challenge
Three significant points must be addressed and assessed by buyers
of social media monitoring for ASX compliance purposes, in accordance
with GN8:
 ASX GN8 is about compliance, governance, risk and control
 GN8 due diligence requires an exception reporting methodology
 GN8 exception reporting is skilled and labour intensive.
Due to these points, ASX GN8 multi-stage screening process cannot be
highly automated. And, once built, execution of the methodology must
be cost-effectively executed. Most social media monitoring firms serving
marketing needs lack the procedure-oriented capabilities to build and
apply such an exception methodology to social media data, let alone at
an acceptable price point.
Strategy
KINSHIP digital provided the Company Secretary with specific details
of unique items; these had to be the original items appearing in social
media and not duplicates, repeats or simply commentary on previously
public information. In particular, they could not be duplicates, repeats or
commentary on items from the online traditional media.
This “by exception” reporting is very important. Company Secretaries
already receive social media and online reports from third-party
monitoring services. KINSHIP digital looked for those things which these
other parties were likely to have missed, while at the same time not
duplicating what the Company Secretary had already received.
Results
The outcome is a cost-effectively delivered, effective and efficient multi-
stage screening methodology for exception reporting of market-
sensitive information.
Note: Crowe Horwath Australia Ltd was delisted from the ASX on 7 Jan
2015 as a result of being acquired by Findex Australia.
Client Testimonial
The KINSHIP digital team have
provided us exactly what we
were looking for in a concise
GN8 daily update.
Bruce Paterson,
Company Secretary
Crowe Horwath Australia Ltd