The Financial Markets Authority has just published a consultation paper on effective disclosure in prospectuses and investment statements.
Says the FMA, in its request for feedback:
We propose to issue a guidance note because:
a. Our functions include promoting the confident and informed participation of businesses, investors and consumers in the financial markets. We believe this guidance note will assist that function;
b. Issuers have asked us for guidance on our powers, duties and functions, particularly following the enactment of the Financial Markets Authority Act;
c. We want to provide more guidance for issuers and their advisers as a means of assisting them to meet their obligations; and
d. We are streamlining some processes within FMA and wish to share the changes with the financial markets.
Submissions are due by the 9th of March. Whatever the FMA finally comes up with, after taking the submissions on board, will be issued on 26 March 2012 for people to come to grips with and becomes “law” on the 1st of May 2012 – from that date forward all offer documents will need to comply with the guidelines.
Documents issued prior to 1 May 2012 will have to (if necessary) be amended to comply prior to the end of 2012.
Earlier information from the FMA was that existing documents would have to comply by 1 October 2012…no longer so. 1 January 2013 is the (proposed) new deadline….but given it has been changed once already, we will just wait and see what is in the final guidance note on 26 March 2012.
Details on the submission process can be found here, should you wish to make one.