Capital Markets Update – July 2019Print publication
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.
FCA issues fine for breaches of the Listing Rules
On 3 June 2019, the Financial Conduct Authority (FCA) issued a press release announcing that it had published Decision Notices setting out the reasons for imposing financial penalties on Cathay International Holdings Limited and two of its directors.
Government responds to report on the future of audit
On 7 June 2019, the Department for Business, Energy and Industrial Strategy (BEIS) issued a press release publishing Government’s response to the report on the future of audit and setting out its recommendations for audit reform.
ICSA publishes response to Brydon review
On 7 June 2019, ICSA: the Governance Institute, published its response to the Brydon Review consultation into the quality and effectiveness of the statutory audit. In addition, on 11 June 2019, ICSA also published its response to Government’s recommendations following the independent review of the Financial Reporting Council (FRC).
FCA issues Quarterly Consultation Paper
Also on 7 June 2019, the FCA published its quarterly consultation paper which consults on various minor amendments to the FCA Handbook. Comments are requested by 7 August 2019.
FCA publishes review of anti-money laundering risks in capital markets
On 10 June 2019, the FCA published its thematic review of anti-money laundering risks in capital markets.
IA responds to FRC consultation
On 11 June 2019, the Investment Association published its response to Government’s recommendations following the independent review of the FRC carried out by Sir John Kingman.
Government’s response to report on executive pay gap published
On 13 June 2019, the BEIS Committee published Government’s response to its report on executive pay. Most noteworthy is Government’s rejection of the proposal to have employee representation on the remuneration committee.
CLLS and the Law Society respond to Kingman Review consultation
On 13 June 2019, the City of London Law Society and the Law Society published their joint response into the recommendations made by the Kingman review of the FRC.
BEIS issues Q&A on new Remuneration Reporting Regulations
On 14 June 2019, BEIS published an Explanatory Document setting out answers to frequently asked questions regarding the new reporting requirements contained in the Companies (Directors’ Remuneration Policy and Directors’ Remuneration Report) regulations 2019.
LSE publishes AIM Notice 56
On 20 June 2019, the London Stock Exchange published AIM Notice 56 announcing that it had made changes to the AIM Rulebook that will take effect when the Prospectus Regulation comes into force on 21 July 2019.
New Prospectus Regulation: Financial Services and Markets Act 2000 (Prospectus) Regulations 2019
On 25 June 2019, the Financial Services and Markets Act 2000 (Prospectus) Regulations 2019 were published. The Regulations give effect to the new Prospectus Regulation through amendments to the Financial Services and Markets Act 2000, ensuring that UK legislation is compatible with the new Prospectus Regulation.
New codes of best practice recognised by the FCA
On 26 June 2019, the FCA issued a press release confirming recognition of the FX Global Code and UK Money Markets Code under its codes recognition scheme.
FCA consultation on new responsibilities over proxy advisors
Also on 26 June 2019, the FCA published a consultation on changes to the Decision Making and Penalties Manual and the Enforcement Guide relating to its new responsibilities over proxy advisors under the Proxy Advisors (Shareholders’ Rights) Regulations 2019 which implement, in part, the Shareholder Rights Amending Directive. The consultation ends on 26 July 2019.
FCA Handbook amendments
On 28 June 2019, the FCA published Handbook Notice 67 covering various changes to the FCA Handbook.
Looking ahead to July 2019
1 July – amendments to the rules of the London Stock Exchange become effective in relation to market maker quote obligations when executing off order book trades.
5 July – 2019 UK Stewardship Code becomes effective.
21 July – Prospectus Regulation comes into force in full.
26 July – FCA consultation relating to new responsibilities over proxy advisors ends.
29 July – consultation into crypto-assets trading platforms closes.