'Director 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.
AIM/ISDX shares to be included in ISAs soon
HM Treasury has published its feedback statement on the inclusion of growth market shares in ISAs. In terms of next steps, HM Treasury will lay regulations before Parliament in July 2013 to extend the range of qualifying ISA investments to include company shares admitted to trading on a recognised stock exchange within the EEA. Shortly after these are approved, AIM and ISDX shares will be eligible for inclusion in ISAs. We will keep you updated on this.
Changes to accounting for leases
The International Accounting Standards Board (IASB) has published an exposure draft for a new lease accounting standard, which will have a profound effect on financial statements for many companies. Our Financial Reporting Expert Group has written an article about how these could affect your company and will responding to the consultation shortly.
Quarterly reporting ditched in the revisions to the Transparency Directive
The amended Transparency Directive was approved in Parliament recently. As a result of the amendments, listed companies will no longer have to produce Interim Management Statements (quarterly reports). However, this won't happen immediately. It will enter into force once it is published in the Official Journal in October/November 2013 and then member states have two years to transpose it into national legislation. Therefore, it is likely to come into effect in Q4 2015.
Companies on SME Growth Markets won't have to produce insider lists
The European Parliament, Council and Commission reached an agreement on the Market Abuse Regulation and published the agreed text on 5 July 2013. The regulation extends market abuse provisions to exchange regulated markets, such as AIM and ISDX. However, companies on 'SME Growth Markets' (as defined in MiFID II, which is currently undergoing review) will not have to produce insider lists.
Assuming that AIM and ISDX will become designated as SME Growth Markets once the MiFID II review is completed, this is good news. AIM and ISDX companies currently have to apply many of the market abuse provisions (since the UK regulatory regime is super-equivalent), but do not have to produce insider lists. We worked closely with Government to ensure that AIM and ISDX companies would not have this new requirement imposed on them.
The Market Abuse Regulation is due to be published in the Official Journal by the end of 2013, which means it would come into force in the UK around Q1 2016.