The Monetary Authority of Singapore (MAS) said it will not take any regulatory action against Global Logistics Properties Limited (GLP) after it has concluded its investigations on the firm.
In a statement, the central bank said it has carefully assessed the circumstances of the case relating to an omission of information concerning a non-competition arrangement in its prospectus for public listing in October 2010.
“We have concluded that the omission did not amount to a breach of the Securities and Future Act (SFA),” the MAS said.
It said the investigation looked into the GLP’s arrangement with ProLogis, Inc. and assessed whether or not the “omission significantly altered the information mix available to investors.”
The MAS said that while GLP did not breach the guidelines, “it should not have chosen a narrow and technical assessment of the materiality of the non-competition arrangement.”
Instead, GLP could have taken a more prudent course by disclosing the arrangement in the prospectus.
“We have reminded GLP of its responsibility as a public listed entity to exercise greater prudence when assessing its disclosure obligations in future,” MAS said.
MAS said it will not hesitate to take appropriate actions against parties that contravene the law, saying all companies intending to access the capital markets must uphold high disclosure standards.
“When confronted with difficult disclosure issues, they should avoid taking a narrow or technical approach in considering the information needs of investors,” the statement also added.
Source : Channel NewsAsia – 22 Jul 2011