185 Electronic prospectuses and Internet securities application

Electronic prospectus and Internet securities application

The key features of the guidelines for electronic prospectus and electronic application forms are as follows:

1. Electronic prospectuses (e-prospectuses) and electronic application forms (e-application forms) are to be accompanied by a notice stating that the e-prospectuses and e-application forms are issued, circulated and distributed for informational purposes only.

2. The e-host must ensure that the e-prospectus is a copy of the corresponding prospectus that has been registered by the SC. E-host means a person who is allowed to issue, circulate or distribute electronic prospectuses and electronic application forms, and is limited to the following persons:

a. issuers

b. dealers

c. banks

d. merchant banks, and/or

e. such other person(s) as may be determined by the SC in accordance with such terms and conditions as the SC deems fit.

3. Save for limited exceptions, the e-prospectus will not be allowed to contain embedded hyperlinks to other information contained in other parts of the internet site on or electronic storage medium in which the e-prospectus appears, or third party information.

4. Electronic application forms must be accompanied by a copy of the prospectus that has been registered by the SC.

5. The e-host must take adequate and appropriate measures to ensure that the e-prospectus and e-application form are prevented from unauthorised tampering or alteration.

6. The e-host must retain a copy of the format and information displayed to an applicant when accessing an e-prospectus and an e-application form in a durable and legible medium for seven (7) years.

7. The e-host must ensure that the electronic prospectus is presented in a way that the applicant will make his or her investment decision on the basis of the prospectus, and not on the basis of the advertisement, promotional material or other information.

8. The application provider must prominently display the following notices to accompany the facility providing for internet securities application:

a. notice as to the risk of using the Internet

b. notice as to alternative methods of securities application

c. notice as to the person responsible for the facility for internet securities application

d. notice as to the procedures for withdrawal of securities application made when the supplementary prospectus is issued.

9. The applicant must receive a confirmation of receipt of the internet securities application upon submission of the e-application form. The applicant must be able to download into an electronic storage medium or print out a hard
copy version of the confirmation for his or her own record. The application provider must provide clear and simple instructions as to how an applicant can print or download the confirmation.

10. The application provider must put in place adequate and appropriate systems and security measures to ensure the reliability, availability, integrity and confidentiality of the securities application to other related information
or transactions transmitted via the facility for internet securities applications.


BCS 202/05 Corporate Compliance Management Copyright © 2011 by Wawasan Open University. All Rights Reserved.


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