The Jamaica Stock Exchange (JSE) will now require all listed companies to include a Management Discussion and Analysis Disclosure as part of their annual report and Prospectus/Offer document to the market. This disclosure is a standard report internationally and is also a requirement of the Securities Act 1999 and The Companies Act 2004. The purpose of an MD&A is to provide an objective and easily readable analysis of the company’s operation within a given period and management’s assessment of the company based on past activities, future plans and other internal & external factors that can impact on its operations.

MD&A’s are beneficial in that they provide more transparency and disclosure, evidence that management is serving shareholders’ interest and a better basis for analysis and assessment. This rule is in keeping with international best practices and has been amended to JSE Rule 404 (E) – Annual Reports and Accounts and Appendix 3 – Listing Agreement (8).