Capital Markets Update: February 2023

January’s news

FCA seeks views on streamlining transparency rules on structured digital reporting

On 12 January 2023, the Financial Conduct Authority (FCA) published a consultation paper seeking views on proposals to streamline its rules requiring DTR 4.1 issuers to prepare, publish and file with the FCA their annual financial report in an electronic format, and for the financial statement within it to be in a structured digital format. Responses are requested by 24 February 2023.

Law Society responds to consultation on changes to the Takeover Code

On 17 January 2023, the City of London Law Society published its response (together with that of the Law Society of England and Wales) to the proposed amendments to the Takeover Code relating to the application of the contractual offer timetable in competitive bid situations.

FRC publishes updated statement on ESG challenges

On 30 January 2023, the Financial Reporting Council (FRC) published ESG Statement of Intent: What’s Next. The statement summarises the initiatives that the FRC has undertaken in the UK and internationally since 2021 to assist and support its stakeholders and to drive best practice in high-quality and comparable ESG reporting and disclosure.

BEIS announces consultation on payment practices

On 31 January 2023, the Department for Business, Energy and Industrial Strategy (BEIS) published for consultation proposals to amend the Reporting on Payment Practices and Performance Regulations 2017 and the Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017. The closing date for responses is 28 April 2023.

Looking ahead to February 2023

1 February – Institutional Investor Services benchmark policy for 2023 comes into effect.

1 February – new FCA Handbook financial promotion rules for high-risk investments and for firms communicating and approving financial promotions come into force.

7 February – closing date for responses to the FCA’s consultation on the introduction of a gateway for firms that approve financial promotions for unregulated firms.

8 February – closing date for responses to the FRC’s consultation on audit committees standard.

20 February – amendments to the Takeover Code to the presumptions of the definition of ‘acting in concert’ take effect on this date.

24 February – closing date for responses to the FCA’s consultation on streamlining digital reporting transparency rules.

28 February – closing date for responses to FRC consultation FRED 81: FRS 101 Reduced Disclosure Framework 2022/23 cycle.

28 February – closing date for the UK Transition Plan Taskforce consultation on its draft disclosure framework and implementation guidance for climate transition plans.