The Securities Authority published a decision by the Administrative Enforcement Committee in a proceeding on two alleged different reporting breaches by Ophectra Real Estate and Investments Ltd.

The panel’s decision on the initial reporting illustrates the importance of updating practices in companies going public, reminding to pay attention to the minimal threshold of testing to be done before immediate reporting.

On the second report matter, the panel’s decision reflected a relatively facilitating approach attributing great importance to cautions concerning future forecast information included in the reports.  The panel did, in fact, transfer some responsibility to the “reasonable investor”, who is expected not to be hasty but to take investment decisions after perusal of the company reports.  It will be interesting to see how the Securities Authority responds to the decision.

Following is a clients memo from our firm’s Capital Markets and Securities Department: Clients Update – the Securities Authority Administrative Enforcement Committee decision concerning misleading details in immediate reports>>