TSE SAYS SELECTIVE DISCLOSURE STILL A PROBLEM
Thought it was interesting, but didn't know were to post it:
MAY 19, 1999 (BANFF, ALBERTA) - TSE Senior Vice-President
of Market Regulation John Carson, today delivered a tough
message to listed companies on the dangers of selective
disclosure.
"The blunt fact is that retail investors are disadvantaged when
institutional investors and analysts are given preferential access to
company information. This violates the fundamental principles of
fairness that support our market," Mr. Carson pointed out to an
audience of over 250 executives gathered for the 12th annual
Canadian Investor Relations Institute conference in Banff.
Mr. Carson called on companies to make a concerted effort to
expand on current disclosure practices by making the additional
information given to professional investors accessible to a broader
audience. He said that the Internet and other new delivery
channels make this goal achievable. These channels include:
Web sites - Make supporting data and background information
available via the site. The TSE recently released electronic
guidelines for listed companies which recommended this
approach.
Conference Calls - Permit both the media and investors to listen
to information provided in conference calls with analysts. The
TSE recently launched a pilot project with Salter New Media to
broadcast quarterly earnings conference calls of TSE-listed
companies over the Internet on Q1234.com.
"At the TSE we're doing our part," said Mr. Carson. "It's up to
listed companies to ensure that retail investors get access to the
same information as investment professionals even if that
information is not "material" as defined in TSE disclosure
policies."
Mr. Carson said the TSE is working with the Ontario Securities
Commission to address problems of selective disclosure.
The fully automated Toronto Stock Exchange consistently ranks
as one of the world's top exchanges and is Canada's premier
market for senior equities, accounting for approximately 90% of
all equity trading in Canada. In 1998, more than 26 billion shares
traded, worth more than $490 billion - about $2 billion a day in
share transactions. With a proud 147-year history at the heart of
the Canadian economy, the TSE continues to provide Canadian
and international investors with a well-regulated, fair and
accessible marketplace.
For further information please contact:
Steve Kee
Manager, Media Services
Marketing and Communications
The Toronto Stock Exchange - tse.com
416.947.4682 -- office #
416.574.7500 -- cellular #
416.375.8856 -- page # |
