Guidelines on Advertising in Relation to Securities Offerings

Brian Chia, Wong & Partners, Kuala Lumpur

In early September the Securities Commission (‘SC’) issued guidelines to set out its policy in respect of advertising in relation to securities offerings. The guidelines cover mainly pre-prospectus advertising and post-prospectus advertising but also clarify exemptions relating to post-balloting speeches, sophisticated investors, and reports that relate to the affairs of a listed corporation. The object of the guidelines is to ensure that the investing public is exposed to fair and reliable information and will not be coerced into making rash decisions based on the hype and publicity that often surround a securities offering.