.jpg)
The Securities and Futures Commission (SFC) today published the latest edition of its Corporate Regulation Newsletter highlighting the importance of the proper disclosure of inside information by listing applicants and listed companies (Note 1).
Drawing on a number of examples identified in recent listed company announcements, the newsletter describes some of the factors to be considered when determining whether information needs to be disclosed. These include, among others, the certainty and materiality of the information as well as whether it diverges from market expectations. The newsletter also advises companies to be careful when they repeat information which was either included in their prospectuses or otherwise already announced.
Regarding disclosures by listing applicants, the newsletter reinforces the obligation on sponsors to conduct reasonable due diligence to ascertain the accuracy of the information disclosed in listing documents. Additionally, the newsletter makes it clear that where the identities of a listing applicant’s major customers are not included in the prospectus, then this information cannot be supplied at roadshows or in marketing materials. Listing applicants are also encouraged to take care to ensure that incentive schemes for initial public offerings are appropriate and easy to understand.
The Corporate Regulation Newsletter is available on the SFC website. Members of the public may subscribe by filling out the form available under the “Subscribe” link. Comments and suggestions can be sent to CRnews@sfc.hk.
Notes:
- Under the current statutory regime on disclosure of inside information which came into effect on 1 January 2013, listed companies are required to disclose inside information to the public in a timely manner.
