Guidelines on Disclosure of Inside Information

This week SFC issued a draft set of guidelines to explain "inside information" and its application, in parallel with FSTB's publication of proposals to make it statutory for listed corporations to make timely disclosure of "price-sensitive information" (PSI).

FSTB's Consultation Paper proposes to include in SFO a statutory requirement for a listed corporation to disclose to the public as soon as practicable PSI that has come to its knowledge.

As part of the proposals, SFC has drafted guidance on what constitutes "inside information", a new term used in the proposed legislation to mean PSI. "Safe harbours" and how they would apply are also described in the "Draft Guidelines on Disclosure of Inside Information".

Key contents of the Draft Guidelines include:

• What may constitute inside information?
• Examples of possible inside information concerning the corporation
• When and how should inside information be disclosed?
• Responsibility for compliance and management controls
• Safe Harbours that allow non-disclosure of inside information
• Guidance on particular situations and issues

Listed companies should carefully read through the Consultation Paper and Draft Guidelines to understand the new "minefield" set by SFC!