On 2 April 2013, the Singapore Exchange (SGX) announced the introduction of Practice Note 12.2, which provides guidance on compliance with the disclosure requirement on internal controls in connection with Rules 610(5) (Prospectus, Offering Memorandum and Introductory Document) and 1207(10) (Circulars and Annual Reports).

Background

On 14 September 2011, SGX announced amendments to the Listing Rules intending to strengthen corporate governance practices and foster greater corporate disclosure. Under a new Rule 719(1), an issuer is required to have a robust and effective system of internal controls, addressing financial, operational and compliance risks. In conjunction with Rule 719(1), disclosure requirements on internal controls were also introduced in Listing Rules 610(5) and 1207(10). An advisory note providing guidance on compliance with these disclosure requirements on internal controls was sent to all listed companies on 16 April 2012. Practice Note 12.2 replaces and formalises the advisory notes and can be found here.