Locations
Market reCap September 2014 edition
- AIM Notice 39 – update on directors participating in a fundraising
- Investor guidelines on share capital management
- Investor guidelines on transactions
- UKLA and AIM require sanctions confirmation
- Primary Market Bulletin No.8
- Board appointments and equality law
- The end of quarterly reporting requirements
- Proposed changes to the Takeover Code
- Engagement letters
- "Blocking" a company's shares: How to respond to a notice under s 793 Companies Act 2006
The Financial Conduct Authority (FCA) has invited comments on its proposal to remove the requirement for issuers of shares admitted to trading on a regulated market to publish interim management statements.
Rule 4.3 of the Disclosure and Transparency Rules currently requires issuers of shares admitted to trading on a regulated market (such as the main market of the London Stock Exchange) to publish interim management statements during the first six months of the financial year and again during the second six month period. If an issuer publishes quarterly financial reports, it is taken as satisfying this requirement.
Rule 4.3 implemented a requirement of the Transparency Directive. That Directive has been revised and the requirement for interim management statements removed. Although Member States have two years in which to implement the amending Directive, the FCA are keen to bring these changes in earlier. It proposes to remove Rule 4.3 in its entirety.
As well as reducing the administrative burden in line with the Government's aims in response to the final report of the Kay Review in July 2012, the FCA's proposal seeks to address the concern that "rigid quarterly reporting can promote an excessive focus on short-term results by company management and investors". It is hoped that removal of the requirement will reduce costs for issuers and benefit smaller companies.
Issuers can, however, continue to publish this information if they wish.
The FCA have requested comments by 4 September 2014 as they hope to remove the requirement to publish interim management statements in the Autumn of 2014, a year ahead of the deadline for implementation of the amendments to the Transparency Directive.
Owain Davies is a Solicitor in Fieldfisher's Corporate Group in London.