The Financial Conduct Authority has published a consultation paper on reforming the availability of information in the UK equity IPO process. In the FCA’s view, for too long information on companies about to float has been restricted to corporate finance advisory firms and investment bankers. By the time the prospectus is published, trading in the … Continue Reading
ESMA has published an updated version of its Q&A on the Market Abuse Regulation. Clarification has now been provided on the following matters: For the purpose of calculating whether the threshold triggering the notification obligation under Article 19(1) of the MAR has been reached, the transactions carried out by a person discharging managerial responsibilities (PDMR) … Continue Reading
The European Securities and Market Authority has published its final guidelines on the steps and the records that a person receiving a market sounding will have to consider and implement according to Article 11(11) of the Market Abuse Regulation (EU) No 596/2014 (MAR). A market sounding is the disclosure of information to one or more potential investors, … Continue Reading
The EU Council has agreed a negotiating stance on proposed new rules on prospectuses for the issuing and offering of securities in the EU. The proposed Regulation is an important step towards the creation of the capital markets union which is due to be fully functioning by the end of 2019. The draft regulation seeks to provide all … Continue Reading
The Financial Conduct Authority has published a discussion paper on the availability of information during the UK equity IPO process. The FCA focuses on 2 key issues: the fact that in the vast majority of London IPOs (in the absence of a retail or other public offer) an approved prospectus is not published until immediately … Continue Reading
The London Stock Exchange has issued AIM Notice 44 in which it is consulting on proposed changes to the AIM Rules for Companies in advance of the Market Abuse Regulation coming into effect on 3 July 2016. MAR establishes a new EU-wide regulatory framework on market abuse which expands on the previous regime and includes insider dealing, unlawful … Continue Reading
The London Stock Exchange has published Notice N02/16, which sets out the revised Admission and Disclosure Standards and High Growth Segment Rulebook. The revised Standards have been adopted in the same form as that proposed by the LSE in its consultation published on 4 December 2015 with the exception of the proposed amendments relating to … Continue Reading
The Code Committee of the Takeover Panel has published a public consultation paper, PCP 2016/1, setting out proposed amendments to the Takeover Code (the “Code”) with regard to the communication and distribution of information and opinions during an offer by, or on behalf of, an offeror or the offeree company. The Code Committee considers that … Continue Reading
The Takeover Appeal Board has considered the wording in Rule 2.6(d) of the Takeover Code, which deals with the time by which a publicly identified potential offeror, which is in competition with an announced firm offeror, must clarify its intentions in relation to the offeree company. By way of background, on 14 October, Capita plc … Continue Reading
The Financial Conduct Authority has published its eleventh quarterly consultation paper (CP15/42). One of the proposals is to change the FCA’s Enforcement Guide given the FCA’s new power to suspend voting rights for shareholders who do not comply with certain Transparency Directive requirements. The new Transparency Regulations 2015, which amended the Financial Services Markets Act by adding section … Continue Reading
The Institutional Shareholder Services has published an update to its benchmark voting policy. ISS has confirmed that it will make the following changes to its UK & Ireland Proxy Voting Guidelines to be published in December 2015: “Overboarding”: ISS may issue an adverse recommendation for overboarding if the following guidelines are not met (although a … Continue Reading
From 26 November 2015, all issuers must disclose their home Member State to: the competent authority of the Member State where it has its registered office, where applicable the competent authority of the home Member State; and the competent authorities of all host Member States. To assist with this, the European Securities and Markets Authority … Continue Reading
The Financial Conduct Authority is proposing to amend its guidance on when an issuer can legitimately delay disclosure of inside information. It is proposing to remove the last sentence in DTR 2.5.5G in order to clarify that issuers may have a legitimate reason to delay disclosure in circumstances other than the non-exhaustive examples set out … Continue Reading
The Transparency Directive (TD), which creates a common basis for disclosure and dissemination of regulated information to the EU markets, was amended in 2013 and comes into force on 26 November 2015. The European Securities and Markets Authority has published four documents relating to the amended TD to promote implementation and contribute to a harmonised EU … Continue Reading
The Full Federal Court published its reasons for judgment in allowing an appeal in a securities class action, Caason Investments Pty Ltd & Anor v Simon Cao & Others NSD 269 of 2015 (“Caason”). Applicants can now plead market-based causation for claims for misstatements and omissions in an IPO and short form prospectus, as well … Continue Reading
The European Commission launched the Capital Markets Union Action Plan on 30 September 2015 to help build a true single market for capital across the 28 EU Member States. The plan aims to improve investment alternatives by increasing and diversifying the funding sources for Europe’s businesses and long-term projects, including a step plan, such as … Continue Reading
The European Securities and Markets Authority has announced the Draft Regulatory and Implementing Technical Standards MiFID II/MiFIR. This includes the “Markets in Financial Instruments Directive” (MiFID II), the “Market Abuse Regulation” (MAR) and the “Central Securities Depositaries Regulation” (CSDR). The aim of these new rules is to make the markets more fair, more secure and more … Continue Reading
The European Securities and Markets Authority (ESMA) is consulting on its regulatory technical standards on the European Single Electronic Format (ESEF). From 1 January 2020, issuers listed on regulated markets will be required to prepare their annual financial reports (AFR) in an ESEF. The idea is to make submissions easier for issuers and to facilitate accessibility, analysis and comparability … Continue Reading
Following the well-publicised issues at Quindell plc, AIM Regulation has published guidance on AIM company disclosures arising from equity financing products involving AIM securities in which an AIM company or its directors may have an interest. Such products include equity financing facilities, equity swap facilities and certain crowd funding type products. The following points are included in the guidance: … Continue Reading
In an article published in GlobalCapital, John Loh discusses the Chancellor’s recent speech at the Shanghai Stock Exchange which could see moves for a stock trading link being established between China and the UK. Click here to read the article with commentary from Benjamin Kroymann, a Shanghai and Berlin-based partner at Squire Patton Boggs.… Continue Reading
A report by the European Securities and Markets Authority has found market risks for the European securities markets have increased, and ESMA’s risk indicator for market risk is now at its highest level, “very high”. The report, “Trends, Risks and Vulnerabilities Report No 2 for 2015” on EU securities markets, covers market developments from January … Continue Reading
The Financial Conduct Authority has published its quarterly consultation paper which, amongst other things, proposes a number of amendments to the Listing Rules, Prospectus Rules and Disclosure and Transparency Rules. The proposals include: Changes to the requirements on cancellation of listing of securities following a takeover offer. This would require a controlling shareholder (of 80%) to … Continue Reading
The European Securities and Markets Authority (“ESMA”) is holding consultations on the remaining Implementing Technical Standards (“ITS”) under the Markets in Financial Instruments Directive II legislation (“MiFID II”), as is required before it makes its final submission to the European Commission. The paper seeks stakeholders’ views on the following three draft ITS: the suspension and removal … Continue Reading
Recent market activity: IPOs Kainos Group plc offer of existing shares and admission to premium listing and to trading on the Main Market of the London Stock Exchange. £164m Prospectus Sophos Group plc underwritten global offer of new and existing shares and admission to premium listing and to trading on the Main Market of the London Stock … Continue Reading
