Material Information Disclosures Are Not an Advertising Platform

Material information announcements on the Market Observation Post System should still be factual and restrained. If a company thinks it is absolutely wonderful, my humble suggestion is to buy media space. Taiwanese readers and investors actually cannot tell whether something is a journalist's news report or a company's promotional copy, and media outlets need advertising budgets to survive. But material information announcements on the Market Observation Post System, which is overseen by the stock exchange, must take the regulator's approach and standards into account. Major passive-component manufacturer YAGEO held its group AI summit on September 26. That day, it issued a material information announcement titled “YAGEO Group AI Summit Concludes Successfully, with Every Seat Filled.” On October 7, the Taiwan Stock Exchange imposed an NT$200,000 contractual penalty on the grounds that material information announcements must not contain advertising-like statements. The exchange reminded listed companies that material information announcements must not contain advertising-like statements or provide information that has not been confirmed. They must not use such announcements to expound management philosophy or business objectives, or use them as a platform for advertising.