August’s news

FCA enforcement guidance inquiry re-opened

On 5 August 2024, the House of Lords Financial Services Regulation Committee published a press release announcing that it had re-opened the inquiry into the proposals by the Financial Conduct Authority (FCA) to publicise enforcement investigations. The committee invites written submissions to this inquiry by 11 October 2024.

Revised guidance on going concern basis of accounting and related reporting

On 5 August 2024, the Financial Reporting Council (FRC) published for consultation revised guidance on the going concern basis of accounting and related reporting, including solvency and liquidity risks. The draft guidance brings together the requirements and provisions of company law, accounting and auditing standards, the UK Listing Rules, the UK Corporate Governance Code and other regulation relating to reporting on the going concern basis of accounting and solvency and liquidity risks. The consultation closes on 28 October 2024 and the FRC expects to publish its final guidance in early 2025.

FCA consults on changes to the NSM

On 9 August 2024, the FCA launched a consultation setting out proposed changes to the requirements for submitting regulated information to the National Storage Mechanism (NSM). The FCA plans to introduce more comprehensive data requirements to make it easier for users to find regulated information on the NSM and allow the FCA to implement improved data quality controls. The consultation closes on 27 September 2024.

FRC launches discussion on digital reporting

On 13 August 2024, the FRC published a discussion paper which seeks views on the future policy direction of the UK digital reporting framework. The paper considers changes to regulation following Brexit that may affect future digital reporting obligations for listed companies, as well as the impact of measures in the Economic Crime and Corporate Transparency Act 2023 that will enable the Registrar of Companies to require the electronic delivery of all company filings, including annual accounts. The FRC is leading discussions on the transition away from paper reporting, supported by other UK regulators (such as the FCA, Companies House, HMRC and the Charity Commission) whose remits include digital reporting requirements. Each regulator is in the early stages of considering significant changes to their rules and will use feedback from the discussion paper to inform their policy development. Responses to the discussion paper are requested by 1 November 2024.

Takeover Panel increases the PTM levy rate

On 14 August 2024, the Takeover Panel published Statement 2024/19 confirming an increase in the PTM levy rate, which is payable on trades in securities of companies that are incorporated in the UK, the Channel Islands or the Isle of Man and whose securities are admitted to trading on a UK regulated market or a UK multilateral trading facility. The PTM levy, which provides funding for the Takeover Panel, will increase from £1 per contract where the total consideration of the relevant trade is greater than £10,000 (or the equivalent in any other currency) to £1.50 per contract where the total consideration of the relevant trade is greater than £10,000 (or the equivalent in any other currency). The increase will take effect in respect of trades in securities from 2 December 2024.

Looking ahead to September 2024

5 September – closing date for comments on proposed new and revised Technical Notes relating to the sponsor regime discussed in FCA Guidance Consultation 24/3.

12 September – closing date for responses to the Competition & Markets Authority consultation on proposed updates to merger control guidance documents.

27 September – closing date for responses to the FCA’s consultation on submitting regulated information to the NSM.

30 September – deadline set by the FRC for the operational separation of audit practices from wider business activities within the four main accountancy firms.

30 September – regulations widening the circumstances in which individuals may apply to the Registrar of Companies to protect their residential address from public disclosure come into force.