Capital Markets update – February 2022

1st February 2022

Welcome to the current edition of Capital Markets Update, the monthly briefing from the Corporate Group at Walker Morris rounding up the previous month’s regulatory developments within the equity capital markets and looking ahead to future developments.

January’s news

Regulations on mandatory climate-related financial disclosures

On 17 January 2022, the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 were made. These regulations will amend the Companies Act 2006 to introduce a new requirement for in scope companies to disclose climate-related financial information in line with the recommendations of the Taskforce on Climate-related Financial Disclosures. The regulations come into force on 6 April 2022 and apply to accounting periods starting on or after that date.

Government to strengthen rules on misleading cryptocurrency adverts

On 18 January 2022, HM Treasury announced in a press release that certain cryptoassets will be brought within the remit of the financial promotion regime by expanding the scope of the Financial Promotion Order 2005.

FCA consults on financial promotions

On 19 January 2022, the Financial Conduct Authority (FCA) published a consultation paper seeking views on proposals to amend its financial promotion rules and guidance. Responses should be received by 23 March 2022.

FRC publishes new research on audit quality

On 26 January 2022, the Financial Reporting Council (FRC) published findings from a joint research project, Audit Committee Chairs views on, and approach to, audit quality. The research analyses the views of Audit Committee Chairs on the key drivers of audit quality. The FRC suggests that the research findings lend support to the sweeping audit reforms proposed by Government.

Looking ahead to February 2022

1 February – Institutional Shareholder Services’ benchmark policies updated for 2022 will generally be applied for shareholder meetings taking place on or after this date.

4 February – closing date for responses to BEIS’ call for evidence on the review of the Reporting on Payment Practices and Performance Regulations 2017.

9 February – closing date for responses to HM Treasury’s consultation on the post-EU Future Regulatory Framework Review.

18 February – closing date for responses to the Takeover Panel’s consultation paper, PCP 2021/1, on proposed Takeover Code amendments.