Disclosure Document Preparation and Updating - Traps for the Unwary

Disclosure document preparation and updating is seen to be relatively straight forward exercise, a bit like filling in a form. But the Code contains quite a few traps for the unwary, and the overlay of the s52 prohibition on misleading or deceptive conduct is frequently overlooked. In this article we explore some of the traps, and note some of the common mistakes people make when completing disclosure documents. We conclude that the relatively low cost of external involvement in this exercise on an annual basis is far outweighed by the likelihood and serious consequences of producing a non-compliant document.

The most critical trap is the disclosure obligation itself. In many cases there is a need only to produce a single disclosure document each year, but this is not always the case. The Code obligation needs to be considered in the context of the following:-