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SGX RegCo lists 109 firms that must continue quarterly reporting

SGX RegCo lists 109 firms that must continue quarterly reporting

Source: Business Times
Article Date: 07 Feb 2020
Author: Claudia Tan

This comes in the wake of new rules announced by the Singapore Exchange Regulator (SGX RegCo) this month that permit listed companies to dispense with QR, as long as they are not deemed to be of higher risks.

Singapore's frontline market regulator has released a list comprising 109 "riskier issuers" which must continue to make quarterly reporting (QR) of their financial results.

This comes in the wake of new rules announced by the Singapore Exchange Regulator (SGX RegCo) this month that permit listed companies to dispense with QR, as long as they are not deemed to be of higher risks.

The reversal of quarterly reporting rules came amid concerns over rising compliance costs and growing evidence that a framework based on market capitalisation was too arbitrary and not effective in targeting companies that should be doing more frequent reporting.

Prior to the revamp, around 70 per cent of companies listed here have to file quarterly financial reports.

QR was implemented in 2003 for listed companies with market capitalisation of above S$20 million. The threshold was subsequently raised to S$75 million due to cost concerns for smaller companies.

Of the 109 companies named, 61 are listed on the mainboard while 48 are Catalist listings. They are required to undertake QR because they do not have clean audit opinions or face financial and regulatory compliance issues.

Of these firms, 24 were previously not subjected to QR as they did not meet the minimum market capitalisation criteria.

The addition of these 24 companies, which would not have been captured under the old regime, underlined SGX RegCo's stance that a size-based approach may result in firms that ought to be doing quarterly reporting falling through the cracks.

The 24 issuers will be given a one-year grace period while the remaining 85 will continue with their regular QR.

"The grace period is set out in the rules and will apply to companies that are currently not subject to QR regime. We will have to give them sufficient time to make sure they are able to produce their quarterly results," SGX RegCo head of listing compliance June Sim told the media.

Issuers that are required to do QR because they do not have clean audit opinions will have to do so until they are cleared by auditors.

Those that are directed by SGX RegCo to perform QR will require the regulator's nod to discontinue QR.

Ms Sim said concerns surrounding companies directed to do QR must arise from matters that have significant financial impact. "It doesn't mean that when there are disclosure lapses, we would automatically exercise power to direct the company to undertake QR."

Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.

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