Capital Markets Update – September 2020Print publication
LSE publishes AIM disciplinary notice
On 10 August 2020, the London Stock Exchange (LSE) published AIM Disciplinary Notice AD23 in relation to the public censure and fining of Yü Group plc for breaches of AIM Rules 10 (Principles of disclosure) and 31 (AIM company and directors’ responsibility for compliance).
FCA issues reporting obligations reminder
On 10 August 2020, the Financial Conduct Authority (FCA) sent a Letter to senior partners and directors of audit firms, reminding audit firms of their regulatory reporting obligations. The letter emphasises the importance of public and private assurance reports and disclosures.
FCA issues statement on use of IFRS 16
On 18 August 2020, the FCA published a statement confirming that it will not pursue regulatory action where issuers preparing annual or interim accounts take advantage of the reliefs permitted by amendments to IFRS 16 Leases as adopted by the IASB in May 2020 before the amendments to the standard have been formally endorsed by the EU.
LSE publishes Inside AIM newsletter
On 19 August 2020, the London Stock Exchange published an Inside AIM newsletter setting out temporary relief for AIM companies which choose to use the modified IFRS 16 Leases before adoption by the EU. This follows on from the earlier FRC statement noted above that it will not pursue regulatory action where issuers take advantage of amended IFRS 16 prior to EU endorsement.
FCA publishes latest Primary Market Bulletin
On 19 August 2020, the FCA published Primary Market Bulletin 30, its newsletter for primary market participants. Topics include a new draft technical note on when a prospectus is required where securities are issued pursuant to schemes of arrangement, a general update on changes in relation to the Prospectus Regulation and a reminder of the importance of the ‘person discharging managerial responsibilities’ regime under the Market Abuse Regulation.
Chartered Governance Institute issues updated guidance on directors’ duties
On 25 August 2020, the Chartered Governance Institute published updated guidance on directors’ general duties under the Companies Act 2006, which includes a section on the section 172 reporting requirement.
Looking ahead to September 2020
1 September 2020 – closing date for the European Supervisory Authorities’ consultation on proposed environmental, social and governance disclosure standards for financial market participants, advisers and products.
3 September 2020 – the Companies (Shareholders’ Rights to Voting Confirmations) Regulations 2020 comes into force, transposing the final aspects of the revised Shareholder Rights Directive (SRD II) into UK law.
8 September 2020 – closing date for feedback on the European Commission’s proposal for a delegated regulation setting out methodologies and indicators to use when determining the extent to which economic activities can be considered environmentally sustainable under the Taxonomy Regulation.
8 September 2020 – closing date for the European Commission’s consultation on the protection and facilitation of cross-border investment within the EU.
10 September 2020 – Companies House restarts the process of striking off companies that have applied for voluntary strike off.
23 September 2020 – closing date for the European Commission’s consultation on the suggested approaches to remedying the distortive effects to the single market caused by foreign subsidies.
30 September 2020 – closing date for feedback on the FCA’s draft Technical Note considering whether the issue of new securities pursuant to a scheme of arrangement under Part 26 Companies Act 2006 constitutes an offer of transferable securities to the public.
30 September 2020 – date on which a number of temporary provisions relating to company meetings under the Corporate Insolvency and Governance Act 2020 come to an end.