Compliance


Issuer’s with a listing on the stock exchange are surrounded by an extensive regulatory framework. The single purpose of these regulations is to create and provide investors with transparency regarding both securities and companies.

The following guidelines will cover regulatory reporting, disclosure of management, ad hoc publicity and corporate governance which constitute the main functions of these regulations.

Trying to fulfill these obligations can be quite a challenge especially if you want to maintain a stock exchange listing. In fact, listed companies may also be threatened by sanctions and will be given public disclosure about launching an investigation, which can cause damage to their reputation.

To deal with such issues, investors need to have an experienced compliance organization.

Regulatory Reporting

Issuers from listed securities are obligated to continuously report various Swiss Exchanges administrative and technical data that are related to the company and the securities. The guidelines will generally vary depending on the type of listed securities. The most extensive form of reporting that is obligated can affect issuers of listed equity securities.

Disclosure of Management Transactions

Management transactions that are related to equity securities and are issued by a listed company that involves the management or members of the board needs to be reported to the stock exchange by the pertinent issuer. The regulations are highly complex, plus the deadlines are very short. As a result, the issuer needs to focus on the training and processes concerning the relevant employee and bodies to ensure compliance is followed.

Ad hoc Publicity

In accordance with the designated procedures, issuers of listed securities are required to publish relevant facts about any share-price that had not been disclosed. A delay with such facts on disclosure may be subjected to certain penalties or prerequisites. Compliance with these regulations that cover ad hoc publicity stipulate that issuers need to incorporate the relevant procedures and processes in their organizations and need to ensure that employees are completely aware of the rules and regulations and are trained accordingly.

Corporate Governance

Information regarding corporate governance requires issuers of listed securities to include a separate chapter in their annual reports. In this context, the relevant “pièce de résistence” focuses on being the required details on remunerations that are paid to the management and the board of directors. The appropriate regulations cover the disclosure of the elements and principles of the procedures, responsibilities as well as the remunerations; that way there is a cause for determination.

According to the obligations that are required to maintain compliance with the stock exchange listing issuers need to have the precise awareness and knowledge of the various, but relevant announcements, commentaries, circulars, guidelines, correspondence as well as regulations. Additionally, issuers need to take into consideration the complex and comprehensive practices of these sanctions in accordance with the context of the designated obligations.

In this section we will discuss:

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