The document provides recommendations for emerging market companies pursuing initial public offerings (IPOs) on the German stock exchange. It recommends that intermediaries supporting an IPO have expertise in both the German capital market and the country where the issuer operates. It also recommends issuers prepare extensively for an IPO, including conducting legal and financial due diligence, implementing proper governance and compliance systems, and training management on capital market expectations. Additionally, it recommends issuers establish an IPO team including at least one executive with capital markets experience and an investor relations manager based in Germany.
The document discusses the implications of the Alternative Investment Fund Managers Directive (AIFMD) for private equity fund managers. Some key points:
1) The AIFMD applies to EU-based fund managers and non-EU managers who market funds in the EU. It affects private equity fund managers who manage over €500M in assets.
2) The AIFMD aims to regulate Alternative Investment Fund Managers (AIFMs) and provide investor protection. It establishes rules around calculating assets, capital requirements, operating conditions, and delegation.
3) Private equity fund managers caught by the AIFMD must comply with rules relating to risk management, liquidity, valuation, and more. They will also need a
The document discusses how the Alternative Investment Fund Managers Directive (AIFMD) affects private equity fund managers in Europe. It affects managers who control over €500 million in assets or offer redemption rights within 5 years. It requires authorization, adherence to operating conditions, limits on delegation, and appointing a depositary. Managers must monitor assets, maintain capital reserves, implement risk management, and comply with new transparency and reporting rules. The directive aims to harmonize regulation of alternative investment fund managers across the EU.
Journal Of Pension Planning & Compliance Otc Derivativeswhhope
This document summarizes key features and risks of over-the-counter (OTC) derivatives and lessons for their use in retirement plans. OTC derivatives are customized transactions between two parties that take place in an unregulated market. They expose parties to market, counterparty credit, operations, and legal risks due to their complexity. Recent high-profile losses from unauthorized trades and valuation errors remind plans of derivatives' risks. Proper risk management including board oversight, constraints on use, and risk monitoring can help plans mitigate risks from using OTC derivatives.
Hatstand Snaphot - Extraterritorial Reach of the MiFID ReviewSilvano Stagni
The document discusses the extraterritorial reach of MiFID II/MiFIR regulations on entities located outside of the European Union. It notes that even if entities are not directly subject to MiFID rules, they may still be impacted in some ways due to business relationships with EU-based entities that are subject to MiFID. Specifically, it discusses impacts on data reporting requirements, transaction reporting, and best execution obligations when some entities in the transaction chain are located outside of the EU. The document also addresses product governance and research unbundling requirements that may apply to non-EU firms depending on their business activities and relationships within the EU.
The document provides an overview of securities financing transactions (SFT) regulation (SFTR) including:
1) It defines shadow banking and SFT instruments such as repos, securities lending, buy-sell backs, and margin lending.
2) It describes the Securities Financing Transaction Regulation (SFTR) which increases transparency of SFT markets in response to shadow banking risks.
3) It outlines SFTR reporting requirements, data flows, and timelines for financial and non-financial counterparties to start reporting SFTs to trade repositories.
Business Model Draft For Meeting 20110111Doug Barnert
The document discusses two business models for managing insurance contracts:
1) The asset liability management (ALM) business model, which focuses on matching asset and liability cash flows over the life of insurance contracts. Measurement should be based on discounted expected cash flows.
2) The underwriting business model (UBM), which is focused on underwriting results like premiums, claims, and expenses on an undiscounted basis. This model is typical for short-duration property/casualty contracts.
The document argues that measurement and presentation of insurance contracts should be based on the insurer's business model to provide a meaningful reflection of performance.
The document discusses key aspects of purchase price allocation (PPA) according to IFRS 3. It outlines that PPA should be an integrated part of every acquisition and involve identifying intangible assets, valuation analyses, and back testing. It describes the acquisition method under IFRS 3 which involves identifying assets/liabilities of the acquired company, measuring them at fair value, and recognizing any resulting goodwill or gain. Contingent liabilities may be recognized if the fair value can be measured reliably, unlike IAS 37.
The document provides an overview of recent developments in pensions investment law and practice. It discusses legal issues trustees should consider when making investments, including ensuring proper investment advice and delegating decisions appropriately. It also summarizes new European regulations on securities financing transactions that will require reporting, record-keeping and risk warnings. Finally, it provides updates on the longevity market and an upcoming seminar hosted by Linklaters on pensions investment issues.
The document discusses the implications of the Alternative Investment Fund Managers Directive (AIFMD) for private equity fund managers. Some key points:
1) The AIFMD applies to EU-based fund managers and non-EU managers who market funds in the EU. It affects private equity fund managers who manage over €500M in assets.
2) The AIFMD aims to regulate Alternative Investment Fund Managers (AIFMs) and provide investor protection. It establishes rules around calculating assets, capital requirements, operating conditions, and delegation.
3) Private equity fund managers caught by the AIFMD must comply with rules relating to risk management, liquidity, valuation, and more. They will also need a
The document discusses how the Alternative Investment Fund Managers Directive (AIFMD) affects private equity fund managers in Europe. It affects managers who control over €500 million in assets or offer redemption rights within 5 years. It requires authorization, adherence to operating conditions, limits on delegation, and appointing a depositary. Managers must monitor assets, maintain capital reserves, implement risk management, and comply with new transparency and reporting rules. The directive aims to harmonize regulation of alternative investment fund managers across the EU.
Journal Of Pension Planning & Compliance Otc Derivativeswhhope
This document summarizes key features and risks of over-the-counter (OTC) derivatives and lessons for their use in retirement plans. OTC derivatives are customized transactions between two parties that take place in an unregulated market. They expose parties to market, counterparty credit, operations, and legal risks due to their complexity. Recent high-profile losses from unauthorized trades and valuation errors remind plans of derivatives' risks. Proper risk management including board oversight, constraints on use, and risk monitoring can help plans mitigate risks from using OTC derivatives.
Hatstand Snaphot - Extraterritorial Reach of the MiFID ReviewSilvano Stagni
The document discusses the extraterritorial reach of MiFID II/MiFIR regulations on entities located outside of the European Union. It notes that even if entities are not directly subject to MiFID rules, they may still be impacted in some ways due to business relationships with EU-based entities that are subject to MiFID. Specifically, it discusses impacts on data reporting requirements, transaction reporting, and best execution obligations when some entities in the transaction chain are located outside of the EU. The document also addresses product governance and research unbundling requirements that may apply to non-EU firms depending on their business activities and relationships within the EU.
The document provides an overview of securities financing transactions (SFT) regulation (SFTR) including:
1) It defines shadow banking and SFT instruments such as repos, securities lending, buy-sell backs, and margin lending.
2) It describes the Securities Financing Transaction Regulation (SFTR) which increases transparency of SFT markets in response to shadow banking risks.
3) It outlines SFTR reporting requirements, data flows, and timelines for financial and non-financial counterparties to start reporting SFTs to trade repositories.
Business Model Draft For Meeting 20110111Doug Barnert
The document discusses two business models for managing insurance contracts:
1) The asset liability management (ALM) business model, which focuses on matching asset and liability cash flows over the life of insurance contracts. Measurement should be based on discounted expected cash flows.
2) The underwriting business model (UBM), which is focused on underwriting results like premiums, claims, and expenses on an undiscounted basis. This model is typical for short-duration property/casualty contracts.
The document argues that measurement and presentation of insurance contracts should be based on the insurer's business model to provide a meaningful reflection of performance.
The document discusses key aspects of purchase price allocation (PPA) according to IFRS 3. It outlines that PPA should be an integrated part of every acquisition and involve identifying intangible assets, valuation analyses, and back testing. It describes the acquisition method under IFRS 3 which involves identifying assets/liabilities of the acquired company, measuring them at fair value, and recognizing any resulting goodwill or gain. Contingent liabilities may be recognized if the fair value can be measured reliably, unlike IAS 37.
The document provides an overview of recent developments in pensions investment law and practice. It discusses legal issues trustees should consider when making investments, including ensuring proper investment advice and delegating decisions appropriately. It also summarizes new European regulations on securities financing transactions that will require reporting, record-keeping and risk warnings. Finally, it provides updates on the longevity market and an upcoming seminar hosted by Linklaters on pensions investment issues.
Financial Reporting Assets and their Fair ValueMuzammilAbdul
- An entity is developing a new production process and incurred $1,000 of expenditures in 2015.
- $900 was spent before December 1, 2015 and $100 was spent between December 1-31, 2015.
- On December 1, 2015 the production process met the criteria for recognition as an intangible asset, with the know-how having a recoverable amount including future cash outflows to complete it.
Meeting 3 - Mechanism of trading (Capital market)Albina Gaisina
This document discusses the mechanisms of trading in capital markets. It covers the major assets that trade, including money markets, fixed income markets, equity markets, and derivative markets. It also covers the differences between primary and secondary markets, with primary markets involving the initial sale of securities to raise capital for the issuing company and secondary markets involving the resale of securities between investors with no funds going to the company. The document outlines the order information flows and types of orders involved in primary and secondary market trading.
Ifrs accounting for financial assets and financial liabilitiesTarapada Ghosh
This document discusses the classification and measurement of financial assets and liabilities under IAS 39. It explains that financial assets are classified into four categories: (i) fair value through profit or loss, (ii) held to maturity, (iii) loans and receivables, and (iv) available for sale. It provides details on the criteria for each classification and discusses examples of different financial instruments that could fall under each category. The document also discusses the measurement approaches for financial instruments, including initial measurement at fair value plus transaction costs and subsequent measurement using amortized cost or fair value depending on the classification.
KJW - Spring 2015 - Guide to Transaction OpinionsKyle Wishing
This document provides an overview of fairness opinions and solvency opinions that are commonly provided by independent financial advisors for corporate transactions. A fairness opinion expresses whether a proposed transaction is fair from a financial point of view to assist parties with fiduciary duties like boards of directors. Fairness considers both aggregate and relative fairness to shareholders. Fairness opinions are not recommendations but can reassure parties and show fiduciaries acted reasonably. They are most appropriate when conflicts of interest exist, such as mergers, buyouts, or changes in control. Solvency opinions assess if a transaction leaves a company solvent by comparing assets to liabilities.
1. The document discusses the taxation of derivatives under Pakistani tax law. Currently, there are no specific provisions dealing with the taxation of derivatives, though provisions related to speculation business can apply to some extent.
2. Derivatives are defined under IAS 39 and include forwards, futures, swaps, options and other contracts whose values are dependent on underlying variables.
3. For taxation purposes, the income from speculation is treated as a separate business. Various aspects of derivatives like foreign exchange gains, speculation losses and expenses need to be dealt with for tax purposes.
4. Clear guidelines are needed from the tax authorities to address uncertainties around when derivative transactions will be taxed, whether gains will be capital or
The document discusses key concepts related to financial statement analysis including current assets, current liabilities, fixed assets, inventory, suppliers, debt, operating profit, working capital, and capital employed. It provides definitions and examples of these terms and discusses factors relevant to evaluating companies from the perspective of suppliers, banks, owners, new investors, and management.
IFRS 7 prescribes disclosure requirements for entities regarding their financial instruments. It aims to provide transparency on the significance of financial instruments for an entity's financial position and performance, as well as the nature and extent of risks arising from financial instruments. The standard requires disclosures on the categories and amounts of financial instruments, gains/losses from these instruments, and qualitative and quantitative information on credit, liquidity, and market risks that the entity faces. Proper presentation of these extensive disclosures is important to provide useful information to financial statement users.
IFRS 12 disclosure of interest in other entitiesSohan Al Akbar
The document provides an overview of IFRS 12, which requires entities to disclose information about interests in other entities. It discusses the objective of IFRS 12, which is to require disclosures that enable users to evaluate the nature of risks associated with interests in other entities and the effects of those interests. It outlines the significant judgements and assumptions that must be disclosed, such as those made in determining control of another entity. It also describes the various disclosure requirements, including requirements to disclose information about subsidiaries, unconsolidated subsidiaries, joint arrangements, associates, and unconsolidated structured entities.
Earnings per share is a measure of performance and indicator of attractiveness of an ordinary share as an investment. It is calculated for both basic and diluted earnings per share. Ordinary shares are subordinate to other equity instruments and the number used in calculating earnings per share is adjusted for rights issues and bonus issues using an adjustment factor based on theoretical ex-right share values.
IFRS 7 requires financial institutions to disclose information about financial instruments and the risks arising from them. Disclosures must include:
1) Details of financial assets and liabilities by category on the statement of financial position.
2) Items of income, expense, gains and losses from financial instruments in the statement of comprehensive income.
3) Qualitative and quantitative information about credit, liquidity, and market risks.
Aifmd level 2 measures december 2012 cummings finalCummings
The document summarizes key aspects of the Level 2 Measures implementing the Alternative Investment Fund Managers Directive (AIFMD). It describes how the Level 2 Measures provide details on calculating assets under management, leverage, additional capital requirements, general operating conditions, and delegation of functions for alternative investment fund managers (AIFMs) and their funds (AIFs). The Level 2 Measures aim to create a harmonized framework for regulating AIFMs across the EU and ensure high levels of investor protection.
IAS 32: Presentation of Financial InstrumentsSohan Al Akbar
The document provides an overview of IAS 32 Presentation of Financial Instruments. It discusses the objectives of IAS 32 which are to establish principles for presenting financial instruments and provide definitions to distinguish between equity and liabilities. It also covers definitions of key terms like financial instrument, financial asset, financial liability, and equity instruments. Additionally, it addresses requirements around compound financial instruments, treasury shares, and offsetting financial assets and liabilities. The document aims to clarify the rules and principles in IAS 32 around the classification and presentation of different types of financial instruments.
Addressing Retail Flowback in Unlisted REITs (real estate investment trusts)Spencer Johnson
The document discusses potential strategies for addressing the "flowback issue" faced by unlisted real estate investment trusts (REITs) pursuing a listing transaction. Specifically, it examines doing nothing, implementing lock-ups to control shareholder selling, and having the REIT enter the market to absorb some of the shareholder selling. Case studies of previous REITs that did nothing showed significant downward pressure on stock prices from retail shareholder selling. Implementing lock-ups through a recapitalization is an effective but costly strategy requiring shareholder approval. Having the REIT purchase some shares could help but is restricted by regulations around the listing process.
A UIT is a type of investment vehicle defined by the Investment Company Act of 1940 as having a fixed portfolio of specified securities that it holds for a defined period of time, after which it terminates. A UIT is created by a sponsor who deposits securities into a trust, managed by a trustee, with units then sold to investors. Unlike actively managed funds, a UIT does not trade its portfolio during its lifetime. Main advantages are lower costs, tax efficiency, and more predictable returns due to its static portfolio, but risks include lack of active management and sales charges.
Special Purpose Vehicals Securitizationfinancedude
Special Purpose Entities (SPEs) are legal entities created for specific purposes in structuring securitization transactions. SPEs are critical components of the $5.2 trillion U.S. securitization market, which provides liquidity to financial institutions and consumers through products like mortgages and credit cards. SPEs hold pools of financial assets, issue securities to investors, and protect investors from bankruptcy risk of the financial institution that established the SPE. Accounting standards require disclosure of risks and obligations associated with SPE transactions, even if the SPE is not consolidated on the financial institution's balance sheet.
This document provides definitions for over 50 terms related to stocks, the stock market, and financial analysis. Some key terms defined include American Depository Receipts, which allow foreign stocks to trade in the US market, arbitrage which is the practice of exploiting price differences in the same security trading on different exchanges, and cash flow which refers to a company's net income plus non-cash expenses like depreciation. Additional terms defined include preferred stock, price-earnings ratios, technical analysis, warrants, and puts and calls which are options contracts.
Onyx Limited offers equity, fixed income, and alternative investment strategies run by highly experienced portfolio managers.
Underpinning all that we do is a deep commitment to fundamental research, concentration within portfolios, and risk management.
morgan stanley Prime Dealer Services Corp.finance2
Prime Dealer Services Corp.'s statement of financial condition as of May 31, 2008 is presented. Key highlights include:
- Total assets of $41.998 billion, primarily comprised of securities borrowed of $18.149 billion and securities received as collateral of $23.654 billion.
- Total liabilities of $41.899 billion, primarily comprised of securities loaned of $18.153 billion and obligation to return securities received as collateral of $23.654 billion.
- Stockholder's equity of $99.1 million.
The document provides an overview of the Alternative Investment Fund Managers Directive (AIFMD), a new regulatory regime for hedge funds and private equity funds being implemented in the European Union. It discusses what the AIFMD is, who it affects, key requirements around registration, conduct of business, transparency and leverage, and a timeline for implementation. It also analyzes different fund structures and how managers can take advantage of the European passport once compliant with AIFMD.
Vskills basel iii professional sample materialVskills
Bank regulations are needed to reduce risk in the banking system and promote stability. The Basel Accords established international capital standards to strengthen banks against losses and reduce competitive imbalances. Basel III further advanced these standards to be more risk-sensitive in response to financial innovation and globalization multiplying banking risks. Bank regulations aim to reduce risk exposure for bank creditors, systemic risk from multiple bank failures, criminal misuse of banks, and ensure fair treatment of customers.
This document discusses going public in Spain. It outlines the key parties involved in a going public process, including the issuer/company, selling shareholders, global coordinator, underwriters, agent, auditors, and legal advisors. It also describes the CNMV, stock exchange, and systems management company's roles. The steps and requirements to go public are explained, such as eligibility, disclosure documents like the prospectus, and listing admission. Guidelines for advertising the transaction are provided regarding definition, timing, contents and online considerations. Finally, it covers new responsibilities as a listed company.
The document discusses domestic bonds, Eurobonds, and the process of issuing a Eurobond. It provides details on:
1) Domestic bonds are issued in a country's domestic currency and regulated by that country, while Eurobonds are issued internationally and face less regulation.
2) Issuing a Eurobond involves obtaining approvals, selecting a lead manager, determining the bond's terms, marketing it on a roadshow, and agreeing documentation.
3) Selecting a strong lead manager is important, and factors include the bank's distribution capacity, relationship, pricing advice, flexibility, and secondary market support.
Financial Reporting Assets and their Fair ValueMuzammilAbdul
- An entity is developing a new production process and incurred $1,000 of expenditures in 2015.
- $900 was spent before December 1, 2015 and $100 was spent between December 1-31, 2015.
- On December 1, 2015 the production process met the criteria for recognition as an intangible asset, with the know-how having a recoverable amount including future cash outflows to complete it.
Meeting 3 - Mechanism of trading (Capital market)Albina Gaisina
This document discusses the mechanisms of trading in capital markets. It covers the major assets that trade, including money markets, fixed income markets, equity markets, and derivative markets. It also covers the differences between primary and secondary markets, with primary markets involving the initial sale of securities to raise capital for the issuing company and secondary markets involving the resale of securities between investors with no funds going to the company. The document outlines the order information flows and types of orders involved in primary and secondary market trading.
Ifrs accounting for financial assets and financial liabilitiesTarapada Ghosh
This document discusses the classification and measurement of financial assets and liabilities under IAS 39. It explains that financial assets are classified into four categories: (i) fair value through profit or loss, (ii) held to maturity, (iii) loans and receivables, and (iv) available for sale. It provides details on the criteria for each classification and discusses examples of different financial instruments that could fall under each category. The document also discusses the measurement approaches for financial instruments, including initial measurement at fair value plus transaction costs and subsequent measurement using amortized cost or fair value depending on the classification.
KJW - Spring 2015 - Guide to Transaction OpinionsKyle Wishing
This document provides an overview of fairness opinions and solvency opinions that are commonly provided by independent financial advisors for corporate transactions. A fairness opinion expresses whether a proposed transaction is fair from a financial point of view to assist parties with fiduciary duties like boards of directors. Fairness considers both aggregate and relative fairness to shareholders. Fairness opinions are not recommendations but can reassure parties and show fiduciaries acted reasonably. They are most appropriate when conflicts of interest exist, such as mergers, buyouts, or changes in control. Solvency opinions assess if a transaction leaves a company solvent by comparing assets to liabilities.
1. The document discusses the taxation of derivatives under Pakistani tax law. Currently, there are no specific provisions dealing with the taxation of derivatives, though provisions related to speculation business can apply to some extent.
2. Derivatives are defined under IAS 39 and include forwards, futures, swaps, options and other contracts whose values are dependent on underlying variables.
3. For taxation purposes, the income from speculation is treated as a separate business. Various aspects of derivatives like foreign exchange gains, speculation losses and expenses need to be dealt with for tax purposes.
4. Clear guidelines are needed from the tax authorities to address uncertainties around when derivative transactions will be taxed, whether gains will be capital or
The document discusses key concepts related to financial statement analysis including current assets, current liabilities, fixed assets, inventory, suppliers, debt, operating profit, working capital, and capital employed. It provides definitions and examples of these terms and discusses factors relevant to evaluating companies from the perspective of suppliers, banks, owners, new investors, and management.
IFRS 7 prescribes disclosure requirements for entities regarding their financial instruments. It aims to provide transparency on the significance of financial instruments for an entity's financial position and performance, as well as the nature and extent of risks arising from financial instruments. The standard requires disclosures on the categories and amounts of financial instruments, gains/losses from these instruments, and qualitative and quantitative information on credit, liquidity, and market risks that the entity faces. Proper presentation of these extensive disclosures is important to provide useful information to financial statement users.
IFRS 12 disclosure of interest in other entitiesSohan Al Akbar
The document provides an overview of IFRS 12, which requires entities to disclose information about interests in other entities. It discusses the objective of IFRS 12, which is to require disclosures that enable users to evaluate the nature of risks associated with interests in other entities and the effects of those interests. It outlines the significant judgements and assumptions that must be disclosed, such as those made in determining control of another entity. It also describes the various disclosure requirements, including requirements to disclose information about subsidiaries, unconsolidated subsidiaries, joint arrangements, associates, and unconsolidated structured entities.
Earnings per share is a measure of performance and indicator of attractiveness of an ordinary share as an investment. It is calculated for both basic and diluted earnings per share. Ordinary shares are subordinate to other equity instruments and the number used in calculating earnings per share is adjusted for rights issues and bonus issues using an adjustment factor based on theoretical ex-right share values.
IFRS 7 requires financial institutions to disclose information about financial instruments and the risks arising from them. Disclosures must include:
1) Details of financial assets and liabilities by category on the statement of financial position.
2) Items of income, expense, gains and losses from financial instruments in the statement of comprehensive income.
3) Qualitative and quantitative information about credit, liquidity, and market risks.
Aifmd level 2 measures december 2012 cummings finalCummings
The document summarizes key aspects of the Level 2 Measures implementing the Alternative Investment Fund Managers Directive (AIFMD). It describes how the Level 2 Measures provide details on calculating assets under management, leverage, additional capital requirements, general operating conditions, and delegation of functions for alternative investment fund managers (AIFMs) and their funds (AIFs). The Level 2 Measures aim to create a harmonized framework for regulating AIFMs across the EU and ensure high levels of investor protection.
IAS 32: Presentation of Financial InstrumentsSohan Al Akbar
The document provides an overview of IAS 32 Presentation of Financial Instruments. It discusses the objectives of IAS 32 which are to establish principles for presenting financial instruments and provide definitions to distinguish between equity and liabilities. It also covers definitions of key terms like financial instrument, financial asset, financial liability, and equity instruments. Additionally, it addresses requirements around compound financial instruments, treasury shares, and offsetting financial assets and liabilities. The document aims to clarify the rules and principles in IAS 32 around the classification and presentation of different types of financial instruments.
Addressing Retail Flowback in Unlisted REITs (real estate investment trusts)Spencer Johnson
The document discusses potential strategies for addressing the "flowback issue" faced by unlisted real estate investment trusts (REITs) pursuing a listing transaction. Specifically, it examines doing nothing, implementing lock-ups to control shareholder selling, and having the REIT enter the market to absorb some of the shareholder selling. Case studies of previous REITs that did nothing showed significant downward pressure on stock prices from retail shareholder selling. Implementing lock-ups through a recapitalization is an effective but costly strategy requiring shareholder approval. Having the REIT purchase some shares could help but is restricted by regulations around the listing process.
A UIT is a type of investment vehicle defined by the Investment Company Act of 1940 as having a fixed portfolio of specified securities that it holds for a defined period of time, after which it terminates. A UIT is created by a sponsor who deposits securities into a trust, managed by a trustee, with units then sold to investors. Unlike actively managed funds, a UIT does not trade its portfolio during its lifetime. Main advantages are lower costs, tax efficiency, and more predictable returns due to its static portfolio, but risks include lack of active management and sales charges.
Special Purpose Vehicals Securitizationfinancedude
Special Purpose Entities (SPEs) are legal entities created for specific purposes in structuring securitization transactions. SPEs are critical components of the $5.2 trillion U.S. securitization market, which provides liquidity to financial institutions and consumers through products like mortgages and credit cards. SPEs hold pools of financial assets, issue securities to investors, and protect investors from bankruptcy risk of the financial institution that established the SPE. Accounting standards require disclosure of risks and obligations associated with SPE transactions, even if the SPE is not consolidated on the financial institution's balance sheet.
This document provides definitions for over 50 terms related to stocks, the stock market, and financial analysis. Some key terms defined include American Depository Receipts, which allow foreign stocks to trade in the US market, arbitrage which is the practice of exploiting price differences in the same security trading on different exchanges, and cash flow which refers to a company's net income plus non-cash expenses like depreciation. Additional terms defined include preferred stock, price-earnings ratios, technical analysis, warrants, and puts and calls which are options contracts.
Onyx Limited offers equity, fixed income, and alternative investment strategies run by highly experienced portfolio managers.
Underpinning all that we do is a deep commitment to fundamental research, concentration within portfolios, and risk management.
morgan stanley Prime Dealer Services Corp.finance2
Prime Dealer Services Corp.'s statement of financial condition as of May 31, 2008 is presented. Key highlights include:
- Total assets of $41.998 billion, primarily comprised of securities borrowed of $18.149 billion and securities received as collateral of $23.654 billion.
- Total liabilities of $41.899 billion, primarily comprised of securities loaned of $18.153 billion and obligation to return securities received as collateral of $23.654 billion.
- Stockholder's equity of $99.1 million.
The document provides an overview of the Alternative Investment Fund Managers Directive (AIFMD), a new regulatory regime for hedge funds and private equity funds being implemented in the European Union. It discusses what the AIFMD is, who it affects, key requirements around registration, conduct of business, transparency and leverage, and a timeline for implementation. It also analyzes different fund structures and how managers can take advantage of the European passport once compliant with AIFMD.
Vskills basel iii professional sample materialVskills
Bank regulations are needed to reduce risk in the banking system and promote stability. The Basel Accords established international capital standards to strengthen banks against losses and reduce competitive imbalances. Basel III further advanced these standards to be more risk-sensitive in response to financial innovation and globalization multiplying banking risks. Bank regulations aim to reduce risk exposure for bank creditors, systemic risk from multiple bank failures, criminal misuse of banks, and ensure fair treatment of customers.
This document discusses going public in Spain. It outlines the key parties involved in a going public process, including the issuer/company, selling shareholders, global coordinator, underwriters, agent, auditors, and legal advisors. It also describes the CNMV, stock exchange, and systems management company's roles. The steps and requirements to go public are explained, such as eligibility, disclosure documents like the prospectus, and listing admission. Guidelines for advertising the transaction are provided regarding definition, timing, contents and online considerations. Finally, it covers new responsibilities as a listed company.
The document discusses domestic bonds, Eurobonds, and the process of issuing a Eurobond. It provides details on:
1) Domestic bonds are issued in a country's domestic currency and regulated by that country, while Eurobonds are issued internationally and face less regulation.
2) Issuing a Eurobond involves obtaining approvals, selecting a lead manager, determining the bond's terms, marketing it on a roadshow, and agreeing documentation.
3) Selecting a strong lead manager is important, and factors include the bank's distribution capacity, relationship, pricing advice, flexibility, and secondary market support.
The document summarizes the key discussions and best practices for managing cross-border M&A deals that were shared at the 2015 Lex Mundi Summit. General counsel face many challenges in cross-border M&A including navigating complex regulations, cultural and regulatory asymmetries between jurisdictions, and ensuring successful post-merger integration. The Summit participants identified four important disciplines for general counsel: 1) effective relationship management with regulators and internal stakeholders; 2) clear communication and influence across the organization; 3) prudent process and project management; and 4) relentless focus on post-merger implementation. While much legal advice focuses on closing the deal, participants agreed that the hardest work begins after closing in integrating the two companies and ensuring promised
2015 Summit Briefing Excerpt 01.11.2016Eric R. Staal
This report summarizes the key discussions and best practices shared at the 2015 Lex Mundi Summit focused on how general counsel can manage demand, deliver quality, and articulate value in cross-border M&A deals. The Summit highlighted four critical disciplines for general counsel: 1) effective relationship management with regulators and internal stakeholders; 2) strong communication and influence across the organization; 3) careful process and project management; and 4) a relentless focus on post-merger integration from the start of the transaction. Relationship building, clear communication, managing expectations, and ensuring promised synergies are realized were emphasized as essential to navigating the increasing demands and complexities that general counsel face in cross-border M&A.
This document summarizes the key aspects of raising capital through a primary market public offering in India. It discusses the various methods companies use to raise funds, such as issuing shares, debentures, or global depository receipts. It then describes the functions of the primary market and the parties involved, including lead managers, registrars, underwriters, bankers, and advertising agents. It provides details on the prospectus, book building process, and other placement methods such as rights issues, private placements, bought deals and fixed price offerings. Overall, the document offers an overview of the Indian primary market and the process for companies conducting a public securities offering.
Ipo process, how price band determined, role of merchant banker & underwriterBiswajit Bhattacharjee
The document discusses the IPO process and the roles of merchant bankers and underwriters. It provides details on how the price band for an IPO is determined, with the company deciding the price band in consultation with merchant bankers. It also outlines the services provided by merchant bankers such as corporate counseling, credit syndication, issue management, and portfolio management. Underwriters ensure subscription to shares by committing to subscribe to any shares not purchased by investors, for a commission.
This document provides an interactive handbook for investment advisors on prudent fiduciary practices. It includes hyperlinks, bookmarks, expandable sub-headers, and internal and external hyperlinks to help navigate the content. The handbook aims to establish a global fiduciary standard of excellence by defining fiduciary duties, formalizing investment policies, implementing strategies prudently, and monitoring investments. It draws on legal requirements from various jurisdictions but is not a compliance manual and requires advisors to understand applicable local laws.
Some Myths and Truths about Fronting Operations from the perspective of an In...Clementina Bayot-Hiteshew
1) Fronting transactions involve a fronting company issuing a bond on behalf of a ceding company in a jurisdiction where the ceding company is not licensed to operate. The risk is then reinsured back to the ceding company.
2) Fronting transactions are complex due to varying laws, regulations, processes, and systems between countries. Careful documentation and communication between all parties is important for success.
3) While fronting may not be directly profitable, it provides strategic advantages like opportunities for additional business and ability to serve clients globally. Ongoing learning is important as each fronting transaction has unique characteristics.
A merchant bank provides capital to companies through equity ownership rather than loans. It also provides corporate advisory services. A merchant bank engages in various financial activities such as corporate finance advice, money market operations, lending, trade finance, investing, and fund management. Its services include corporate counseling, project counseling, working capital finance, portfolio management, restructuring strategies, credit syndication, and lease financing. A merchant bank caters to corporate firms and engages in primary market activities, taking on more risk than a commercial bank.
This document provides information on the roles and responsibilities of a merchant bank. A merchant bank provides capital to companies through equity ownership rather than loans, and provides corporate advisory services. It engages in a variety of financial activities including corporate finance advice, money market operations, lending, trade finance, investment holdings and fund management. Key services of a merchant bank include corporate counseling, project financing, working capital finance, portfolio management, restructuring strategies, and credit syndication. The document also outlines the differences between commercial and merchant banks and regulatory requirements for merchant banks related to public issues such as due diligence, underwriting obligations, and post-issue monitoring.
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Karoline is a Summer Student at Clearstream, Deutsche Börse Group's settlement and custody division. During her stay she will find out how it is like to work in a bank and share her experiences with you in weekly reports.
Karoline is a Summer Student at Clearstream, Deutsche Börse Group's settlement and custody division. During her stay she will find out how it is like to work in a bank and share her experiences with you in weekly reports.
Karoline is a Summer Student at Clearstream, Deutsche Börse Group's settlement and custody division. During her stay she will find out how it is like to work in a bank and share her experiences with you in weekly reports.
Karoline is a Summer Student at Clearstream, Deutsche Börse Group's settlement and custody division. During her stay she will find out how it is like to work in a bank and share her experiences with you in weekly reports.
1. 1
Best practice recommendations Published by
Deutsche Börse AG
for emerging markets IPOs in collaboration with
Deutsche Börse
Listing Partners
2. 2 Preamble
Preamble
The following recommendations and suggestions are
designed to help issuers as well as participating banks
and advisors to address the special characteristics of
an emerging markets company’s initial public offering
(IPO) and thus to contribute to a successful IPO. They
do not constitute mandatory procedures for conduct-
ing an emerging markets IPO. The specific features
of each issuer should always be taken into account.
Therefore, the following recommendations should not
be treated as a comprehensive list of the issues to be
considered in emerging markets IPOs. For the purpose
of these recommendations, emerging markets IPOs
are IPOs of companies whose management, ownership
structure and operations are predominantly located
in an emerging markets country.
Additional information
Details on financing options and access to the capi-
tal market through Deutsche Börse can be found at
www.xetra.com/listing_e.
The Listing Center also offers an index of expert capi-
tal market specialists: Deutsche Börse Listing Partners.
These independent service providers can also be
searched by area of business and region:
www.xetra.com > Listing > Listing Partners
Your contact at Deutsche Börse
Listing & Issuer Services
Phone +49-(0) 69-2 11-1 88 88
E-mail issuerservices@deutsche-boerse.com
Finance your future. Made in Germany
3. Contents 3
Contents
Recommendations for intermediaries supporting an IPO and their 4
working procedures
Recommendations for preparing an IPO 7
Recommendations regarding issuer’s boards and committees and 9
for its IPO team
Recommendations for the issuer’s post-IPO infrastructure 10
4. 4 Intermediaries supporting an IPO and their working procedures
Recommendations for intermediaries
supporting an IPO and their working
procedures
1. General requirements final consolidated financial statements (potentially
The advisory team involved in an IPO should hold including completion of all forms and notes) via inter-
capital market expertise in the German market as office opinion to the auditor signing the report, thus
well as expertise in transactions involving the country placing the issuer’s auditor in the position of assum-
where the issuer operates. This can either be provided ing responsibility.
by advisors with an international focus, who combine
teams in Germany with teams on site, or by the involve- Depending on the issuer’s financial history, different
ment of competent local advisors. set-ups and procedures might be used here.
Issuers should continue to be supported by profes- Far-reaching checks for possible irregularities (fraud)
sional advisors after the IPO (especially auditors, should be an integral part of audit activities. Among
legal advisors, IR advisors and Designated Sponsors). other sources, irregularities may arise from different
views on corporate governance and general lack of
2. Auditors well-developed internal controls. The audit approach
The auditor should be able to conduct auditing activ- must take these factors into account as a whole and be
ities within the company or group, or through coopera- focused on the special features of the relevant country.
tion partners in both the country where the group This includes the following aspects for example:
holding company is headquartered and in the relevant
country. Both a local team with local expertise and
Fictitious assets: verification that assets exist through
the auditor who signs the auditor’s report should be site visits by the auditor who signs the report.
involved. This auditor should also inspect the com-
Fictitious or missing written bank confirmations:
pany on site. The collaboration between the local audi- confirmations from third parties, especially banks,
tor and the auditor who signs the auditor’s report should be presented to the auditor directly (in per-
should be designed such that both parties hold res- son) by well-informed bank staff. Consideration
ponsibility for the consolidated financial statements should be given as to whether to obtain confirma-
within the scope of their contractual relationship. An tion directly from the third party’s headquarters
example would be the local auditor approving the (rather than from a local branch).
Fictitious sales revenue and receivables: the exist-
ence of receivables and sales revenues – alongside
the usual confirmation of balances – should also
be verified through direct conversations with busi-
ness partners.
Incomplete information: the local auditor, in particu-
lar, should check and guarantee that the issuer’s
relationships to related parties are completely dis-
closed. This is often a particular challenge in emerg-
ing markets due to the often complex ownership
structures and interrelationships between busi-
nesses. Legal advisors should be consulted in this
context with respect to the necessary content of
prospectuses and the results of legal due diligence.
5. Intermediaries supporting an IPO and their working procedures 5
3. Legal advisors/due diligence and prospectus 4. Investment banks/consortium leaders
preparation The consortium leader should have sufficient local
It is advisable for all IPOs, and especially those in expertise to carry out due diligence on site, or
emerging markets, to involve legal advisors with should appoint external advisors (e. . to carry out
g
capital market experience, both on the side of the a separate financial due diligence and commercial
issuer and the bank. Together with the issuer and due diligence) who have sufficient local expertise.
the other parties involved in the transaction, legal the event that external advisors are involved,
In
advisors design and make comments on the pro- the consortium leader should have the expertise
spectus, and implement the corporate legal structure required to examine and evaluate the documents
for the IPO. Legal opinions and disclosure letters in prepared by these advisors. The use of external
accordance with German law are submitted by the third parties is not a substitute for checks by the
legal advisors at certain stages of the transaction, as consortium leader.
well as their counterparts in accordance with local Furthermore, for identified critical questions the
law by the local legal advisors. Based on the auditing supervising consortium leader should conduct its
activities carried out (particularly legal due diligence own supplementary due diligence on site (company,
and participation in prospectus meetings), the disclo- finances and market) or, where appropriate, consult
sure letter contains a negative declaration with regard local experts with demonstrable expertise related
to errors in a prospectus. Close cooperation with local to the market, company and/or system as well as
foreign lawyers is essential here. The submission of technical know-how. The use of external third par-
the legal opinions and disclosure letters has the pur- ties is not a substitute for plausibility checks by the
pose of giving information and uncovering risks, and consortium leader. In addition to their expertise in
also serves to defend the consortium banks. the sector and industry, the advisors involved in this
due diligence should also have experience in the
The primary basis for the prospectus and thus for the preparation of due diligence reports in the country
legal opinions and disclosure letters submitted by where the issuer’s operating activities are mainly
the legal advisors is a legal due diligence. It should be located. Data collection for due diligence purposes
conducted by experienced teams of local and German should take place primarily in the country where
lawyers. The German team has an important monitor- the issuer’s operating activities take place. It is
ing function in this context. Legal due diligence nor- recommended that spot checks be carried out on
mally also includes site visits and interviews with the important data sent by the company and that these
issuer’s management staff. be conducted by independent third parties or in-
house specialists (e. . experienced analysts).
g
is further recommended to arrange for the exec-
It
utive board and supervisory body of the issuer to
implement binding improvement measures in the
company’s organisation with a “milestones plan”
in order to remedy potential shortcomings in risk
management and reporting systems identified by
the audit. Local circumstances, legal requirements
and the shareholders’ right to information are to be
taken into account when determining the propor-
tionality of such risk management and reporting
systems.
6. 6 Intermediaries supporting an IPO and their working procedures
Recommendations for
preparing an IPO
5. Investor relations advisors/PR advisors An IPO leads the emerging market issuer into a new
To simplify coordination, it is advisable to appoint an legal environment and an unfamiliar market. It thus
agency to be responsible for all communications. This requires particularly extensive preparation. It is particu-
agency should ideally cover the entire spectrum of larly important that the issuer is aware before, during
corporate, financial and crisis-related communication. and after the IPO of the information and transparency
This also includes expertise in designing and launch- requirements of the advisors, intermediaries and inves-
ing websites, as well as in financial reporting for the tors involved. The issuer must implement suitable mea-
period after the IPO. sures for fulfilling these requirements. In this respect
we recommend the following:
The agency should also have experience in coaching
managers from emerging markets companies. Help- 1. Due diligence/preparation of prospectus
ing to prepare the management for presentations as It is mandatory to produce a securities prospectus as
well as press and analyst conferences is an important a liability document for an IPO. It is essential that
element of a successful IPO. this is accurate and complete, not only for liability
reasons but also to protect investors. Here it is par-
ticularly important that the bank accompanying the
IPO carries out due diligence in conformity with mar-
ket practice. To ensure that this aspect of the IPO is
conducted efficiently, we recommend the following:
it cannot always be assumed that emerging mar-
As
kets issuers are familiar with German or European
law, the management should be given extensive
7. Preparing the IPO 7
information about liability and the significance of 2. IPO readiness analysis
the securities prospectus. An IPO readiness analysis should be carried out by
The issuer’s management should be informed in the issuer. This should cover the following aspects,
detail by the bank and the lawyers involved about among other things:
the procedure and requirements with regard to
due diligence. Effective and efficient processes for financial reporting:
The management should be advised explicitly that Capital market-ready IFRS accounting including
it is absolutely essential to provide comprehensive informative and transparent segment reporting
information about all aspects of the issuer and Ability to substantiate the equity story with verifi-
to make all necessary documentation available in able and reliable data (financial and non-financial
its entirety. KPIs)
The management should be informed explicitly Timely production of financial statements (annual,
that, in addition to the documents requested for group and quarterly reports) and investor and ana-
due diligence, access must also be provided to lyst communications
documents and information that were submitted Documentation of planning and budgetary processes
to authorities or registers in the period relevant for (minimum three-year planning)
the prospectus. Enforcement of compliance with the standards set
must be ensured that the main results of due dili-
It by Deutsche Prüfstelle für Rechnungslegung (DPR,
gence are provided in the prospectus. A smooth German Financial Reporting Enforcement Panel
flow of information must be ensured here for all par- FREP) in documentation of relevant matters; estab-
ticipants. Due to the complexity of emerging markets lishment of processes to answer FREP enquiries
IPOs, this should be taken particularly into account
when setting up the timeframe. Adequate risk management and internal control
The issuer should be advised that the individuals system (with relevant documentation)
involved in due diligence must be closely involved Early risk identification system
in preparing the prospectus. Reporting to supervisory board, e. . in accordance
g
The drafting sessions for the prospectus should with section 107 of the Aktiengesetz (AktG, German
take place at the location of the issuer’s operating Stock Corporation Act)
companies and should involve the expertise of the Systematic identification, analysis and reporting
issuer’s specialist departments. Heads of manage- of risks
ment must be intensively involved in preparing
the prospectus. Corporate governance and compliance/investor
the event of language barriers, important sections
In relations
of the prospectus should be translated into the local Objective should be the corporate governance
language so that they can be verified by the man- and investor relations organisation as described
agement and approved by the specialist depart- in “Recommendations for the issuer’s post-IPO
ments. infrastructure”.
Taxes
Checking optimal tax structure
Checking tax strategy and tax planning
Internal control system (including excise duties)
8. 8 Preparing the IPO
3. IPO tutoring
The information provided to the investor relations
On the basis of the IPO readiness analysis it can be agency is often inadequate for producing the com-
helpful to conduct IPO tutoring tailored to the specific munication tools required for the IPO. Sources of
issuer’s needs. As part of this IPO tutoring, the weak- information such as the securities prospectus – as
nesses of the issuer identified in the IPO readiness the central basis of information – should be com-
analysis should be addressed and remedied, or a bind- plemented by original information from the issuer
ing plan should be produced to remedy these weak- based on the prospectus (e. product descriptions,
g
nesses (see the information on the “milestones plan” marketing documents, pictures, analyses of markets
on page 6). The issues of corporate governance and and competition etc.)
compliance should also be addressed in this context,
Creating the IR website should also be planned at
as should the construction of a risk management sys- any early stage. It is the first point of call for invest-
tem which is in line with capital market requirements ors and represents the company externally. Content
and focused on the company’s specific requirements. should be easy to update using a generally accepted
content management system.
IPO tutoring also involves management training on
Good capital market communications means that
topics relevant to the IPO and issuer and management the issuer must be actively involved in creating the
follow-up obligations after the IPO. content of an investor relations website and writing
corporate news. This includes structured feedback
Establishment of adequate reporting should also be on drafts submitted to the issuer for review.
emphasised during the IPO tutoring.
The better the information provided to the agency,
the higher the quality of the communications that
The objective should be to have established an ade- accompany the IPO and contribute to active market-
quate risk management and internal control system, ing. The essential aim when producing communi-
as well as adequate reporting, by the time of the IPO cation tools is to achieve conformity with the con-
at the latest. At the very least, a binding plan should tents of the securities prospectus while also attrac-
be agreed for setting up the relevant processes in tively marketing the shares being issued.
good time.
Pre-IPO communication serves to prepare for the com-
4. Pre-IPO communication munication which is to be provided by the issuer
the run-up to the IPO, the issuer should clearly
In after the IPO and is therefore of upmost importance.
set out the capital requirement and financing struc-
ture and provide a detailed explanation of how the
funds will be used. This leads to greater require-
ments for communication and clarification, particu-
larly during the post-IPO phase.
Training on capital market requirements and IR/PR
measures should be obligatory. The particular target
group is the management and investor relations
manager.
9. Issuer’s boards and committees and its IPO team 9
Recommendations regarding the
issuer’s boards and committees and
for its IPO team
1. Executive board and supervisory board With the beginning of the preparation of the IPO, an
The issuer should have at least one executive board investor relations manager ideally based in Germany
member who has capital market experience and should be involved in the issuer’s project coordination
speaks English (CEO or CFO) and who can represent as a fixed member of the issue team. He/she should
the company externally on the capital market. This be able to demonstrate appropriate knowledge of
executive board member should be tied to the com- the requirements relevant to the capital market or be
pany for at least one year after the IPO by contract trained accordingly. He / she should also be able to
(and by incentives where appropriate). negotiate in English – and should ideally also be able
to handle enquiries in German. The investor relations
The executive board member should also have suffi- manager should act in the period after the IPO as the
cient knowledge of the issuer. In this respect, a length main contact for:
of service in the company’s executive board of at least
one year prior to the IPO has proven beneficial. investors
analysts
An executive board member should be given explicit advisors
responsibility for compliance with the subsequent the media.
admission requirements.
He / she acts as an interface between capital market
The supervisory board should have expertise in capi- participants, advisors involved and the executive
tal market law, accounting and the industrial sector. board member responsible for capital market commu-
All members of the supervisory board should at least nication (e. . CFO).
g
be able to communicate in English. The majority of the
supervisory board members should be independent
(i. . they should not be related and should not have
e
business relationships with the company or its princi-
pal shareholder).
2. Project coordination
The management should be advised that the CEO and/
or other executive board members with extensive
knowledge of the company (“IPO key individual(s)”)
are to be fully available to the bank, auditors, lawyers
and other advisors throughout the entire process.
One of the IPO key individuals or a third party with
good access to the IPO key individuals should act as
project coordinator. This project coordinator should
speak English and has to ensure that the advisors are
given sufficient support from the company to fulfil the
information requirements.
10. 10 Issuer’s post-IPO infrastructure
Recommendations for the issuer’s
post-IPO infrastructure
The day of the IPO is not the end of the process for 2. Investor relations and capital market compliance
the issuer’s adjustment to capital market requirements. To ensure capital market compliance, processes should
IR activities and compliance with subsequent admis- be established for identifying insiders, maintaining
sion requirements play a decisive role. The emerging insider lists as well as for ad hoc announcements.
market issuer therefore has a particular need for a suit-
able post-IPO infrastructure, which ideally should have The communications agency chosen for the IPO should
already been created by the time of the IPO. Sufficient continue to be appointed after the IPO for corporate
financial and available personnel resources are to be and financial communication by the emerging market
made available to this end after the IPO as well. In company. It is important here that the executive board
this respect we recommend the following: member responsible for communication has a continu-
ous dialogue with the agency – e. . through regular
g
1. Corporate governance phone conferences – and that both parties keep each
Supervisory board to be comprised of qualified other up to date. The agency is to be informed in a
and largely independent members timely manner on current operational and financial
Rules of procedure for executive and supervisory issues. The agency reports on enquiries from analysts,
boards (including their committees) investors and journalists.
Use of the recommendations of the German Corpo-
rate Governance Committee and checking the basis The agency must be able to support the issuer in ful-
for submitting the Declaration of Conformity filling all ongoing obligations associated with the IPO.
Checking other compliance systems and regula- This includes – where necessary – writing and trans-
tory requirements lating ad hoc announcements and notices on voting
11. Issuer’s post-IPO infrastructure 11
rights, press releases, quarterly reports, and producing 3. Post-IPO support by service providers
the annual report. The agency also helps to prepare The consortium leader should require the issuer to
the AGM and updates the IR section of the website. provide it with continual information (at least once
per year) on the current rights and obligations of the
Furthermore, the agency organises ongoing commu- supervisory and executive boards (in accordance
nication. To this end, an annual plan is set up which with the Stock Corporation Act), transparency and
includes all mandatory appointments and all voluntary follow-up obligations imposed by law and the stock
appointments with the financial community. exchange, especially obligations on the timely pre-
paration of financial reports and the subsequent
To conduct personal appointments with analysts, in- requirements concerning reporting, risk manage-
vestors and journalists, the company’s executive board ment and internal control systems.
member responsible for communication should visit Issuers should continue to be supported by profes-
Germany and other European countries regularly and sional advisors after the IPO (especially auditors,
take part in appropriate capital market conferences. legal advisors, IR advisors and Designated Spon-
The agency should answer enquiries about informa- sors).
tion that is already publicly available on behalf of the Issuers should also commission equity research
company. There should be a continual flow of infor- and create a sufficient infrastructure for efficient
mation between the issuer and the agency for this IR activity.
purpose.
4. Ensuring efficient cooperation between
The investor relations manager, in consultation with supervisory body and executive board members
the CFO, should be able to answer complex investor Minimum requirements should be set for ongoing
relations enquiries from institutional investors on cur- reporting by the company management to the super-
rent business developments within a maximum of visory body, such as the presentation of key com-
24 hours. pany results, conclusion of important contracts,
financial figures (actual vs target).
maintain the continual flow of information, reg-
To
ular “off the board” discussions should take place
between the CEO and the chair of the supervisory
body, at least every two months.
It is reasonable to involve the chair of the supervisory
body at an early stage in order to make meetings of
the supervisory body as efficient as possible. This par-
ticularly applies to the budget meeting and the meet-
ings on the accounts.
12. Published by
Deutsche Börse AG
60485 Frankfurt am Main
Germany
www.deutsche-boerse.com
July 2012
Order number: 1115-4327
Registered trademark
Deutsche Börse Listing Partner®
is a registered trademark of
Deutsche Börse AG.