Regulatory Updates - Introduction of Practice Note 12B
Guidance on the Application of Listing Rules 407(4)(b) and 1204(10)
On 14 September 2011, the Exchange announced amendments to Catalist Rules to strengthen corporate governance practices and foster greater corporate disclosure.
Under new Rule 719(1), an issuer is required to have a robust and effective system of internal controls, addressing financial, operational and compliance risks. The audit committee (or such other committee responsible) may commission an independent audit on internal controls for its assurance, or where it is not satisfied with the systems of internal control.
In conjunction with Rule 719(1), disclosure requirements on internal controls were also introduced in Catalist Rules 407(4)(b) and 1204(10). An advisory note providing guidance on compliance with these disclosure requirements on internal controls was sent to all listed companies on 16 April 2012.
The Exchange today introduces Practice Note 12B to replace the advisory note. This Practice Note formalizes the guidance provided on compliance with the disclosure requirement on internal controls.
The new Practice Note 12B can be found at www.sgx.com.
Should you require any clarifications on the guidance provided in Practice Note 12B, kindly contact SGX Catalist Regulation.