The Australian Securities & Investments Commission yesterday proposed a regulation to protect retail investors from using complex and risky financial systems, costly management fee structures and company disputes.

The move for the regulation on disclosure follows the predicted $770 billion expenditure on infrastructure, such as ports, railways, and telecommunication resources over the next ten years.

ASIC commissioner Greg Medcraft told the media that a consultation paper was made to improve disclosure infrastructure entities.

Medcraft added that the proposed rule will cover listed and unlisted companies and registered managed investment schemes, and that retail investors would benefit from the improved disclosure.

The proposed law will focus on corporate structure and management, funding, theories of models and analysis, valuation, distribution, withdrawal, and diversification.

Companies would be obliged to disclose any information that is only under the corporate government standards, including the linkages of incentive payments by the management and the entity, the distribution cash flows, and the status of payments on units or shares.

"The changes proposed aim to enhance retail investor understanding of the key characteristics and risks associated with investment in an infrastructure entity," Mr Medcraft said.

The regulator watchdog said companies may have the freedom to comply with the proposed rule; though entities are forced to come up with an explanation if it fails to meet the standards.

Discussions and comments regarding the consultation paper are expected to close on June 30, with a follow-up regulatory guide to be released by the ASIC in September.