JSE won’t follow US lead on social media
The Johannesburg Stock Exchange (JSE) says it is not yet ready to allow companies to use social media to disclose their financial results.
Last month (April), the US Securities and Exchange Commission issued a report that makes clear that companies can use social media outlets like Facebook and Twitter to announce key information in compliance with Regulation Fair Disclosure (Regulation FD) so long as investors have been alerted about which social media will be used to disseminate such information.
JSE
Ranked amongst the top 20 exchanges worldwide in terms of Equity Market capitalisation, the JSE in November celebrated 125 years of trading since it first opened its doors on 8 November 1887, a year after the gold rush in the Witwatersrand.
The group uses its Stock Exchange News Service (Sens) to disseminate company results, and does have an account on Twitter. However, that is as far as the company is going at this stage on a docial platform.
“SENS is currently a highly effective and accepted way for receiving financial results and the JSE is currently not considering allowing companies to use social media to disclose their financial results,” said Andre Visser, general manager issuer regulation.
“Listed companies are welcome to use social media to publish financial results in addition to using SENS. Of course companies can only make use of social media or any other media after information has been released on Sens,” he said.
JSE Twitter information
SEC
The SEC’s report of investigation confirmed that Regulation FD applies to social media and other emerging means of communication used by public companies the same way it applies to company websites.
The SEC issued guidance in 2008 clarifying that websites can serve as an effective means for disseminating information to investors if they’ve been made aware that’s where to look for it.
“One set of shareholders should not be able to get a jump on other shareholders just because the company is selectively disclosing important information,” said George Canellos, acting director of the SEC’s Division of Enforcement.
“Most social media are perfectly suitable methods for communicating with investors, but not if the access is restricted or if investors don’t know that’s where they need to turn to get the latest news.”
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