MAS simplifies disclosure requirements on listed entities

More streamlined disclosure of interests or DOI regulatory regime takes effect next week.

The Monetary Authority of Singapore (MAS) said the new regime will take effect on 19 November 2012.

The new regime will seek to consolidate all DOI requirements in the SFA, simplify the notification process for directors and substantial shareholders, and make it a legal requirement for listed entities to notify investors of interests or changes in interests.

"Directors and substantial shareholders will no longer be required to separately report their interests, and changes in interests, in securities to the Singapore Exchange (SGX). This simplifies the reporting process and reduces compliance burden on directors and substantial shareholders," said MAS. "As listed entities will be required to disclose the relevant information to investors, this change to the reporting process will not reduce market transparency."

"To ensure that investors are kept informed of any changes in holdings of directors and substantial shareholders on a timely basis, listed entities will be required to announce the information as soon as possible and no later than the end of the following business day," it added.

MAS will also introduce stiffer penalties for flagrant breaches of up to $250,000 and/or imprisonment for a term
not exceeding two years for material contraventions which are committed intentionally or recklessly. Civil penalties may also be imposed for such flagrant breaches of the law. MAS this will allow them to take enforcement action proportionate to the seriousness of the offence.

In broad strokes, the rest of the changes are as follows: Extension of reporting obligations to Chief Executive Officer who is not a director; extension of DOI requirements to include interests in foreign corporations with
a primary listing on the SGX; and introduction of the use of electronic notification forms for use by directors, CEOs, and substantial shareholders and unitholders.

The new regime also imposes notification requirements on shareholders of trustee-managers of business trusts and responsible persons of real estate investment trusts.