3 Apr 2013

NZX expected to adopt ASX's more flexible disclosure rules

7:56 am on 3 April 2013

A securities law specialist expects the operator of the New Zealand stock exchange to amend its disclosure rules in line with the Australian market.

At present Australian Securities Exchange (ASX) rules oblige firms to immediately inform the market of any information a reasonable person believes will have a material impact on its share price.

From May, under its new guidelines, the ASX has redefined the meaning of "immediately" to allow directors more time.

Chapman Tripp partner Roger Wallis says it means companies listed on the ASX should have more flexibility with making major announcements.

He says both NZX and ASX companies have to go through "all sorts of contortions", for example having to have board meetings at inconvenient hours to make sure they can announce results at the start of the day.

He expects NZX to make a similar pronouncement, so that "immediately" would mean "promptly and without delay".

NZX says it's taken a close interest in developments across the Tasman, given that many companies listed on the New Zealand market have an ASX listing and need to comply with the rules of both exchanges.

It says it's considering the detail of the final ASX proposals to determine whether it will make amendments to the continuous disclosure provisions in the NZX listing rules.