Exemptions from disclosure regime likely; formal announcement expected

Tuesday 16 March 2004

Bell Gully has welcomed news that the Securities Commission will grant a number of exemptions from the new disclosure regulations for directors and officers of publicly listed companies.

Quoted in a government news release issued late last week, Commission chair Jane Diplock stated:

• the Commission would exempt directors and officers who had already disclosed their relevant interests under the stock exchange's listing rules; and
  
  
• in the initial disclosure following commencement of the law, the Commission would grant an exemption from the requirement to provide historical transaction details.

"This is welcome news, and the Commission is to be congratulated for taking a pragmatic approach to this situation," said Bell Gully partner Garry Downs. "We are particularly pleased that the two specific exemptions requested in Bell Gully's submission to the Commission in February appear to have been approved."

The Securities Markets Act (Disclosure of Relevant Interests by Directors and Officers) Regulations were due to take effect on 1 March, but the government announced a delay in commencement to 3 May, after companies expressed confusion over exactly what was required of them.

In the release, Ms Diplock indicated that the Commission would formally announce all class exemptions shortly and may issue a practice note about the regulations.

She also urged the market to present all other issues now so that guidance and exemptions can be finalised in time for the regulations' 3 May commencement date.

Bell Gully's earlier newsletter explains the background to this issue. If you require any further information or assistance, please contact any of the team at the numbers below.

Auckland

Garry Downs
Partner

Brynn Gilbertson
Partner

Haydn Wong
Partner