Malaysia-Request for Feedback by Bursa Malaysia Berhad: Continuing Disclosure Obligations, and Interim Financial Reporting Framework

Request for Feedback by Bursa Malaysia Berhad: Continuing Disclosure Obligations, and Interim Financial Reporting Framework





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Circular No 271/2018
Dated 5 Nov 2018

To Members of the Malaysian Bar
Request for Feedback by Bursa Malaysia Berhad in Relation To Continuing Disclosure Obligations & Consultation Relating to Interim Financial Reporting Framework
Bursa Malaysia Berhad (Regulatory Policy & Advisory) is seeking public feedback on the following:
(1) Review of Bursa Malaysia Securities Berhad ("the Exchange") Main Market and ACE Market Listing Requirements (collectively the "LR") in relation to Continuing Disclosure Obligations and Other Amendments; and
(2) Consultation relating to interim financial reporting framework under the LR.
The notice from Bursa Malaysia Berhad is reproduced below for your reference.
The amendments that are being proposed are "aimed at ensuring that the LR remain balanced, providing adequate levels of investor protection whilst ensuring that it does not result in burdensome compliance costs nor impede ease of doing businesses and growth".
Please provide your comments by completing and submitting the Table of Comments on or before 30 Nov 2018 (Friday).
You may access Consultation Paper No 3 and 4 of 2018 together with the relevant annexures setting out the text of the proposals and the Table of Comments online at the website links provided in the notice from Bursa Malaysia Berhad below.
Thank you.
Roger Chan Weng Keng
Secretary
Malaysian Bar


We are pleased to inform that we have issued our Consultation Papers No. 3 and 4 of 2018 today seeking public feedback on the following:
(a) Review of Bursa Malaysia Securities Berhad ("the Exchange") Main Market and ACE Market Listing Requirements (collectively the "LR") in relation to Continuing Disclosure Obligations and Other Amendments; and
(b) Consultation relating to interim financial reporting framework under the LR.
Consultation Paper on Review of LR in relation to Continuing Disclosure Obligations and Other Amendments ("CP No. 3/2018")
The review in relation to the continuing disclosure obligations is part of the Exchange's efforts to progressively simplify the LR to commensurate with the state of development in our market. In this regard, the consultation paper focuses on simplifying the post listing continuing disclosure obligations of listed issuers, mainly in respect of disclosures in announcements and circulars relating to transactions, as well as corporate disclosure policies. At the same time, the Exchange is also proposing removal of certain disclosure requirements which are viewed as posing insignificant risks to shareholders as well as and enhancements to address gaps to safeguard shareholder interest.
The key proposed amendments set out in the Consultation Paper No. 3 of 2018 include the following:
(a) enhancing the presentation and contents of announcements and circulars relating to transactions;
(b) simplifying the Corporate Disclosure Policies and removing repetitious or redundant immediate announcement requirements;
(c) removing the prescribed restrictions in a trust deed or deed poll of debt securities;
(d) requiring immediate announcements on acquisitions and disposals of subsidiaries only if the relevant materiality threshold is triggered;
(e) requiring shareholder approval if there is a material change (25% or more) in utilization of proceeds from an initial public offering or new issue of securities;
(f) requiring the reasons for a change in financial year end in an announcement of listed issuer which proposes a change in its financial year end; and
(g) imposing a requirement to empower the Exchange to require the issuance of an interim audited financial statements by a listed issuer if it changes its financial year end to beyond 18 months from its last financial year end.
The above proposals are aimed at ensuring that the LR remain balanced, providing adequate levels of investor protection whilst ensuring that it does not result in burdensome compliance costs nor impede ease of doing businesses and growth.
The consultation paper and the relevant annexures can be accessed from the links below:
Consultation relating to interim financial reporting framework under the LR ("CP No. 4/2018")
In view of the global debate and diverse views on interim financial reporting regime, the Exchange proposes to seek public feedback on whether the existing quarterly reporting framework should be maintained and the appropriate interim financial reporting framework in Malaysia. The Exchange intends to encourage and promote an informed, focused and coherent discussion from a broad cross-section of the market to better assess if a change to the current reporting framework is necessary in the best interest of the Malaysian capital market.
The consultation paper can be accessed from the links below:
We welcome your feedback on the above proposals, if any, by 30 November 2018.
Thank you.
Norlaila Mohamed
(For and behalf of Regulatory Policy & Advisory, Bursa Malaysia Berhad)

This circular may also be accessed here.

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