INFINZ congratulates FMA on clearer guidance

Description: INFINZ

3 May 2012

For immediate release

INFINZ congratulates FMA on clearer guidance

The Financial Markets Authority (FMA) has listened to industry feedback on disclosure and should be congratulated, says the Institute of Finance Professionals New Zealand Inc (INFINZ).

INFINZ was commenting on a revised Draft Guidance Note on Effective Disclosure within offering documents such as prospectuses. INFINZ previously expressed concerns about an earlier draft would impose substantial additional requirements on those issuing prospectuses.

“Having reviewed the FMA’s revised guidance, INFINZ is now satisfied no new requirements will be imposed on issuers,” says Executive Director Jim McElwain. “We are pleased the guidance is just that – to communicate the FMA’s view of what it sees as good practice.”

INFINZ was also concerned with the decision of the FMA to discontinue with pre-registration vetting of prospectuses. However, in the revised guidance, the FMA states it is “keen to engage with issuers before they register disclosure documents on novel products, strategic issues, complex or major IPOs”.

McElwain says: “This opportunity for dialogue ahead of registering the prospectus provides the chance for the FMA to provide feedback to issuers, thereby avoiding the situation where the only tools available to it to address deficiencies in a prospectus include cancelling registration.

“In general, INFINZ fully supports and encourages the FMA when it says it will ‘engage with issuers and their advisers on an ongoing basis’, including through further guidance notes, workshops and informal consultation.”

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