Exclusive: SFC to delay research rule change

Author: | Published: 29 Jul 2011

Hong Kong's Securities and Futures Commission (SFC) is to delay introduction of revised research requirements from August 1 to October 31 following lobbying from a consortium of banks in the city, IFLR can reveal.

The SFC last month released proposals to expand the scope of conflicts-of-interest requirements governing analyst conduct when preparing investment research reports.

The provisions had stipulated that listing applicant sponsors would be obligated to ensure that all material data, including forward-looking information, disclosed to analysts be contained in the prospectus or listing document filed on or after August 1.

They aimed to prevent pre-deal research reports from being used by listing applicants to disseminate information without formal prospectus liability. And followed...