Qualified approval for new NZX listing rules from IoD
Qualified approval for new NZX listing rules from Institute of Directors in New Zealand
While generally pleased with the new, refreshed NZX listing rules announced today (30 October 2018), the Institute of Directors is disappointed with the inclusion of “constructive knowledge” in respect of continuous disclosure.
“We welcome the new rules and market structure and hope they will generate more listings, and increase confidence and participation in our markets. So we’re giving the rules qualified approval,” general manager of the IoD’s Governance Leadership Centre Felicity Caird said today.
“But we’re disappointed that the contentious issue of constructive knowledge has been included in the rules despite strong opposition from leading law firms and other key stakeholders.
Time will tell if concerns about adverse effects of this change will materialise – such as increased compliance costs and insurance premiums, the risk of hindsight bias, boards becoming more risk averse, and the possibility of deterring directors from serving on listed companies.”
“It’s important that the listing rules and market structure support success and efficacy of NZX markets and that the rules are in line with corporate governance developments, best practice, and international trends.
“Having rules that are simpler, clearer, shorter and easier to understand has got to be a good thing. The challenge for directors will be to understand what the new rules will mean for their organisations and we will be issuing an update shortly.