Information companies may close: regulators’ clarifications
The joint information letter of the Bank of Russia and the Russian Ministry of Finance to financial market participants sets out general approaches applicable when limiting access to security issuers’ sensitive information, taking into account the balance of interests of both companies and investors.
Currently, when disclosing information, issuers are guided by the Resolution of the Russian Government that allows them to partially close the information. However, different interpretations of the document have resulted in different disclosure practices, including excessive limitation.
The letter clarifies when and to what extent companies are entitled not to disclose information. However, it specifies that companies may exercise this right only in the event of sanction threats.
The Bank of Russia and the Russian Ministry of Finance discourage the practices based on a formal approach and the selective principle when information is unavailable in the sources of accredited information agencies but is posted by issuers in other public media. The letter also provides examples of unjustified and lawful disclosure limitation.