The Cyprus Securities and Exchange Commission (CySEC) has issued a circular reminding issuers with securities admitted to trading on a regulated market of the requirements of the Transparency Requirements (Transferable Securities) Negotiation in a Regulated Market) Law of 2007 regarding the content of interim management reports.
CySEC's examination of interim management reports for the first half of the financial year 2016 has disclosed a number of deficiencies in the reports, particularly:
- Presenting the interim management report as a separate document from the six-month financial report rather than as an integral part of the six-month financial report, as required by article 10 (3) of the Transparency Requirements Law.
- Failing to provide the information required under article 10 (6) of the Law, particularly regarding explanations for differences between budgeted and actual results, comparisons with prior years and risks and uncertainties for the second half of the financial year.
- Failing to disclose transactions with related parties.
The circular reminds issuers that penalties may be imposed in the event of failure to comply with the legal requirements.
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