Various amendments to the Financial Investment Services and Capital Markets Act (the “Capital Markets Act”) were recently promulgated on May 28, 2013. This legal update is the third of a series of updates that will summarize the amendments made to the Capital Markets Act and discuss the major issues relating to such amendments.

The following is a summary of the amendments relating to disclosure and reporting obligations.

Unless otherwise specified in the amendments, the amended Capital Markets Act (the “Amended Act”) will come into force on August 29, 2013, which is the date falling three months from promulgation. For provisions of the Amended Act that will come into force on a separately specified date, we have made note of such dates in our discussion below.

  1. Stricter Disclosure Obligations for Changes in Financial Structure
  2. Regulatory Relaxation on Registration Statements for Sales of Securities
  3. Deemed Withdrawal of Registration Statement in Case of Issuer’s Failure to Submit a Corrective Registration Statement
  4. Disclosure of Remuneration for Individual Officers
  5. Relaxation of Reporting Obligation of Officers and Major Shareholders on Stock Ownership
  6. Imposition of Administrative Fines for Violations of the Obligation to Report Substantial Holdings of Stock, etc. (5% Rule)
  7. Increased Responsibility for Investor Protection and More Stringent Public Disclosure Obligations for Credit Rating Companies