The disclosure of information by issuers: the new rules of the Bank of Russia

The most important for making investment decisions, the information disclosed at securities issue and in the periodic reports will be based on IFRS. Irrelevant, redundant and duplicate information, more will not be published. In the new position of Bank of Russia on information disclosure by issuers of securities the conditions for the transition to disclosure on a consolidated basis for the group of the Issuer.

Under the new rules, the composition and structure of information in the securities prospectus and the report of the Issuer have been harmonized with international standards. The issuers will use IFRS for financial indicators calculation and provide an analysis of the factors that influenced the results of financial and economic activities, — the analogue of the familiar to investors worldwide MD&A (Analysis and discussion of financial condition and results of operations). The most important information, including operational and financial performance, information about the key counterparties will be disclosed at consolidated group of the Issuer and in case of preservation of the Issuer of the disclosure regime on a solo basis, the Issuer shall publish the relevant explanation.

Excluded disclosure requirements irrelevant to investors in reports of the Issuer, almost one-third reduced the list of essential facts which it is necessary to inform in news feed, fixed a duplication of disclosures in different forms. These changes will reduce the regulatory burden on issuers, without lowering the level of transparency of the investment process.

After the transition disclosures in accordance with IFRS report of the Issuer and the affiliated persons list will be disclosed every six months.

New requirements for disclosure by issuers of information will come into force from 1 October 2021, which gives issuers enough time to adapt corporate systems of information gathering.

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