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INFINZ was commenting on a revised Draft Guidance Note on Effective Disclosure within offering documents such as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.”
ends