Buddle Findlay
Added: Jan 31, 2012
The Financial Markets Authority (FMA) released a Consultation Paper requesting feedback on a Guidance Note regarding preparing and presenting prospectuses and investment statements.
The Guidance Note, called "Effective Disclosure", is split into 6 sections, and under each section the FMA seeks stakeholder feedback.
While restating the need to comply with the existing legal requirements in the Securities Act 1978 and the Securities Regulations 2009, the FMA is suggesting that mere technical compliance ("tick box" compliance) will not satisfy the requirements for disclosure documents. The FMA emphasises that disclosure documents must give truthful and complete information, conveying an accurate impression and providing balanced disclosure of risks and benefits.