'Directors' know how' is a monthly article which highlights key rule changes, proposed changes and market updates so that you know what is coming down the track.
Interim Management Statements no longer a requirement for listed companies
As of 7 November 2014, listed companies are no longer required to publish interim management statements. The Financial Conduct Authority consulted on this in August, as a result of the EU's recent revision of the Transparency Directive, and has issued a policy statement summarising the change. The UK Government brought this change in ahead of its deadline for implementing the revised Transparency Directive into UK law. The Quoted Companies Alliance campaigned for this change as a way to encourage long-termism and to offer increased reporting flexibility to companies.
The Financial Reporting Lab issues reminders for the 2014 reporting season
The Financial Reporting Council's Financial Reporting Lab has issued its reminders for the upcoming reporting season. This document summarises key findings and tips from various Lab projects, including:
- Towards Clear & Concise Reporting
- Accounting policies and integration of related financial information
- Reporting of Audit Committees
- Reporting of pay and performance
- A single figure for remuneration
- Presentation of market risk disclosures
- Debt terms and maturity tables
- Net debt reconciliations
- Operating and investing cash flows
New research indicates detrimental impact of MiFID II and FCA proposals on investment research
Peel Hunt has published a new report – Unintended consequences: The impact on the UK equity market of proposed research payment changes – which highlights the results of a survey of buy-side individuals and quoted companies on proposals to banning the use of dealing commissions from paying for investment research. The majority of buy-side respondents (85%) believe that the MiFID II proposals will decrease the number of analysts covering small and mid-cap quoted companies. Furthermore, the majority (74%) believe that it will directly affect the liquidity of small and mid-cap quoted companies.You can read more about the report in this article produced by Peel Hunt. Alternatively, please contact Rachelle Cornel at Peel Hunt for a copy of the report.
As a general development, a recent speech from Steven Maijoor, Chairman of the European Securities and Markets Authority (ESMA – the body currently proposing the ban on dealing commissions to pay for investment research as part of MiFID II) suggests that ESMA may be reconsidering its position. The majority of respondents to ESMA's consultation on MiFID II considered the proposals on inducements and investment research to be too strict.