Toronto Stock Exchange encourages use of electronic communications for disclosure

The Toronto Stock Exchange today released guidelines for the use of electronic communications by listed companies. The guidelines support existing TSE disclosure rules and policies. The proposed guidelines were issued for comment in August 1998, which was followed by a public consultation period generating more than 20 submissions. The public comments resulted in no changes to the substance of the guidelines. The TSE's move to introduce these guidelines reflects the growing importance of the Internet as a preferred medium of communication. More than 70 percent of TSE listed companies currently use the Internet for some components of their communication, marketing or promotion. "The TSE hopes to encourage the use of electronic media to make investor information accessible, accurate and timely," said Cecilia Williams, TSE Director, Regulatory and Market Policy. "The challenge of regulating electronic media is to ensure that regulatory concerns are addressed without impeding innovation. The guidelines are intended to remind our listed companies that any information they make available on their Web sites, by email or otherwise on the Internet must be consistent with their obligations under the Securities Act of Ontario and the TSE's Timely Disclosure Policy." The TSE recommends companies develop policies for disseminating information by electronic means as part of their existing corporate disclosure policies The TSE further recommends that these policies address the currency and accuracy of information on Web sites. The information on a Web site should be comprehensive and should be posted by the company or be made available through direct links to appropriate sites. Finally, companies should develop policies regarding employee use of corporate email and Web site addresses. The guidelines will appear in the TSE Company Manual. Copies of the guidelines are available by calling 416-947-4760, and are also posted on the TSE's Web site, tse.com, and are located under "Market Regulation" among the "TSE/SRO Position Papers/Reports."