Generic disclosures ascribed to Covid-19 not good enough: SGX RegCo

Imperative for companies to provide investors with timely disclosures and regular business updates

Angela Tan

Published Tue, Apr 21, 2020 · 09:50 PM

Singapore

ISSUERS should avoid generic statements that they expect their financial results to be materially impacted due to Covid-19 without providing detailed assessment on how their operations would be affected, Tan Boon Gin, chief executive of the Singapore Exchange Regulation (SGX RegCo), said.

In his latest regulator's column, Mr Tan reminded issuers that reliance on broad-stroke explanations pinned on a decline in general economic activity to explain away their outlook would be "deemed inadequate and of little utility to their shareholders".

"Timely disclosures help manage investors' expectations and avoid shocks when the financial results are released," he advised.

"It is also evidence of sound governance and management, and would strengthen investors' confidence in the issuer and its business strategy, which facilitates fundraising from the market should…