SC issues Plain Language Guide for Prospectuses

Kuala Lumpur, 23 February 2005

The Securities Commission (SC) today released a guide to encourage the use of plain English in prospectuses. This is in line with the SC's ongoing efforts to ensure that the information in offer documents such as prospectuses are easily understood by investors for the purpose of making informed investment decisions.

The Plain Language Guide for Prospectuses outlines several approaches on how to provide clearer disclosures in prospectuses and is available on the SC website here. Prospectuses provide vital information concerning the offer and the company as well as the risks of an offered investment. Investors will be encouraged to read and will find it easier to comprehend prospectuses if these documents are written in plain English, as well as presented in a clear, concise and effective manner.

Parties involved in the preparation of the documents are required to comply with all the regulatory requirements, namely the Securities Commission Act 1993 and the Prospectus Guidelines. They should be aware that the use of plain language does not reduce their liability and they have a responsibility to disclose relevant and important information to investors.


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