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Capital Markets Update – August 2019

Business Meeting 10 Print publication

07/08/2019

July’s news

LSE publishes disciplinary notice for breaches of AIM rules

On 1 July 2019, the London Stock Exchange plc (LSE) published a disciplinary notice in relation to the public censure and fine of Telit Communications plc for breaches of Rules 3 and 31 of the Aim Rules for Companies.

Update to Hampton-Alexander Review

On 1 July 2019, Government issued a press release announcing that the Hampton-Alexander Review had issued an update on the number of female directors appointed to FTSE 350 company boards.

FCA delays changes to its Electronic Submissions System

On 5 July 2019, the Financial Conduct Authority (FCA) announced that it was delaying the implementation of changes to its Electronic Submissions System that are required for it to comply with new reporting requirements under the Prospectus Regulation. Issuers should continue to use the existing processes until further notice.

New UK Stewardship Code

The Financial Reporting Council (FRC) has announced that it will publish the new UK Stewardship Code in October 2019 (rather than on 16 July 2019 as previously stated).

Consultation launched into changes to the Modern Slavery statement

On 9 July 2019, Government published a consultation on changes to the content of modern slavery statements and how Government can improve enforcement of non-compliance with s54 of the Modern Slavery Act 2015. The consultation closes on 17 September 2019.

Law Society responds to consultation on independent board evaluation

On 10 July 2019, the City of London Law Society and the Law Society issued a joint response to the review into the effectiveness of independent board evaluation in the UK listed sector.

NEX Exchange publishes new rules for issuers

On 11 July 2019, NEX Exchange published revised rules which have taken immediate effect following its consultation into changes to the Growth Market Rules for issuers to reflect the new Prospectus Regulation.

ESMA consults on disclosure guidelines under the Prospectus Regulation

On 12 July 2019, the European Securities and Markets Authority (ESMA) launched a consultation on disclosure guidelines under the Prospectus Regulation which came into effect on 21 July 2019. The consultation closes on 3 October 2019. At the same time, ESMA issued a press release noting that it’s Q&As had been updated to reflect the new Prospectus Regulation.

Prospectus Regulation Rules Instrument published

On 15 July 2019, the FCA published the final Prospectus Regulation Rules Instrument 2019 which replaces the current Prospectus Rules sourcebook with a new ‘Prospectus Regulation Rules sourcebook’ to take effect on 21 July 2019.

AFME updates selling restrictions for equity

On 17 July 2019, the Association for Financial Markets in Europe (AFME) published an updated statement on selling restrictions for equity in the UK and EEA to reflect the application in full of the Prospectus Regulation on 21 July 2019.

GC100 updates directors’ remuneration reporting guidance

On 22 July 2019, the GC100 and Investor Group published a revised version of its directors’ remuneration reporting guidance.

2019 Best Practice Principles for Shareholder Voting Research Providers published

On 22 July 2019, the Best Practice Principles Group launched its 2019 Best Practice Principles for Shareholder Voting Research Providers. The principles apply to providers of shareholder voting research and analysis, including proxy advisors.

FCA publishes Handbook Notice 68

On 26 July 2019, the FCA published Handbook Notice 68 covering various changes to the FCA Handbook including those required to align it to the new Prospectus Regulation.

Company law reform

On 29 July 2019, the Bar Standards Board published its response to the consultation into proposals for the reform of company law. The consultation was launched on 5 May 2019 and closes on 5 August 2019

Looking ahead to August 2019

5 August – closing date for BEIS consultation on proposals for the reform of company law to enhance the role of Companies House.

7 August – closing date for FCA Quarterly Consultation paper 24 which concerns minor amendments to the FCA Handbook.

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