Entire Section

  • Selective Disclosure

    • MKT 6.5.3 MKT 6.5.3

      (1) For the purposes of Rule 6.5.2(b), a Reporting Entity of a Listed Fund may selectively disclose Inside Information to a Person prior to making market disclosure of such information only if:
      (a) it is for the purposes of the exercise by such a Person of his employment, profession or duties;
      (b) that Person owes to the Reporting Entity a duty of confidentiality, whether based on law, contract or otherwise; and
      (c) the Reporting Entity has provided to that Person, except where that Person is the DFSA, a written notice as specified in (3).
      (2) For the purposes of (1)(a), the Persons whose exercise of employment, profession or duties may warrant selective disclosure are as follows:
      (a) its advisers, underwriters, sponsors or compliance advisers;
      (b) the Trustee, Eligible Custodian or Persons providing oversight function of the Listed Fund;
      (c) an agent employed to release the information;
      (d) Persons with whom it is negotiating with a view to effecting a transaction or raising finance;
      (e) the DFSA or another Financial Services Regulator where such disclosure is necessary or desirable for the regulator to perform its functions;
      (f) a Person to whom the Reporting Entity discloses information in accordance with a lawful requirement;
      (g) a major Unitholder of the Reporting Entity; or
      (h) any other Person to whom it is necessary to disclose the information in the ordinary course of business of the Reporting Entity.
      (3) For the purposes of (1)(c), the Reporting Entity must, before making disclosure to a Person, provide to that Person a written notice that:
      (a) the information is provided in confidence and must not be used for a purpose other than the purpose for which it is provided; and
      (b) the recipient must take reasonable steps to ensure that the recipient or any Person having access to the information through the recipient does not deal in the relevant Securities, or any other related Investment, or disclose such information without legitimate reason, prior to market disclosure of that information by the Reporting.
      (4) Where a Reporting Entity makes selective disclosure of Inside Information pursuant to (1), it must ensure that a full announcement is made to the market as soon as possible, and in any event, when it becomes aware or has reasonable grounds to suspect that such information has or may have come to the knowledge of any Person or Persons other than those to whom the selective disclosure was made.
      Derived from RM81/2011 (Made 30th November 2011). [VER1/11-11]

      • MKT 6.5.3 Guidance

        1. It is likely that Inside Information will be made known to certain Employees of the Reporting Entity or the Listed Fund. A Reporting Entity should put in place procedures to ensure that those Employees do not disclose such information, whether or not inadvertently, and that Employees are adequately trained in the identification and handling of Inside Information.
        2. Rule 6.5.3 does not excuse a Reporting Entity from its overriding obligation to disclose Inside Information as soon as possible pursuant to Rule 6.5.1. A Reporting Entity which proposes to delay public disclosure of Inside Information should refer to Rule 6.5.4, which sets out the limited disclosure exceptions permitted.
        Derived from RM81/2011 (Made 30th November 2011). [VER1/11-11]