8.2: Ensure international reporting and disclosure standards
More reliable financial reporting standards for investors
To ensure sound and reliable financial reporting, the following amendments were made to the Capital Markets Act:
Section 8 of the Capital Markets (Amendment) Bill 2018 provides for amendment to the Capital Markets Act to include a new Section 30 GA of the Capital Markets Act, it states that:
Section 10 Capital Markets (Amendment) Bill 2018 provides for amendment to the Capital Markets Act to include a new Section 32K A which states that ‘ Any person who on his own action or conspires with another by deceit, intentional concealment, omission or any fraudulent means to obtain financial or personal gain from the public, an issuer or a regulated person commits an offence.’The Capital Markets (Amendment) Act 2018 was gazetted on 11 January 2019 and came to force on 18 January 2019.The Code of Corporate Governance Practices for Issuers of Security to the Public 2015 which was gazetted on 4 March 2016 provides for introduction of integrated reporting (incorporating financial and non-financial information) using frameworks developed by any of the Integrated Reporting Council, The Global Reporting Initiative, the G4 Sustainability Guidelines and/or the Sustainability Accounting Standards Board.
The Corporate Governance scorecards and reporting templates will be reviewed and updated to require issuers to reveal the adopted frameworks (integrated frameworks such as Integrated Reporting Council, the Global Reporting Initiative, G4 Sustainability Guidelines and/or Sustainability Accounting Standards Board) to help in assessing whether their ‘integrated reports’ are consistent with the adopted frameworks.
Extensive submissions have been made to World bank project on design of an independent audit oversight entity.