Companies take their own action on embargo rules

By Campbell McIlroy

Friday 8th September 2000

BILL FOSTER:

Up to individual firms to follow embargo rules

The Stock Exchange has no plans to strengthen disclosure guidelines for listed companies following timing gaffes by Advantage Group and Fletcher Challenge.

But companies are taking their own initiatives, with one listed company this week asking the media to sign a confidentiality agreement before releasing embargoed results.

NZSE managing director Bill Foster said the exchange was a self-regulatory environment and the last thing it wanted to do was encourage a regulatory environment.

Instead it encouraged companies to see the benefits of working within the listing rules.

Pressure has been mounting on the exchange to tighten up its policing of disclosure rules after breaches were revealed.

Mr Foster said there were no specific listing rules on releasing information to the media under embargo.

It was up to the individual firm if it wanted to place people in the invidious position of having insider information, he said.

Listing rules say information must be released to the exchange at least 30 minutes before its public release. "If an issuer chooses to use an embargo to comply with this rule, the times and conditions of embargo shall be displayed prominently on every page of each release and the exchange shall receive its embargoed announcement at least 15 minutes prior to its release to any other party including the media."

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