FCA proposes the abolition of interim management statements

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Summary: After much discussion and following on from the EU Directive amending the Transparency Directive, the FCA has published proposals removing the requirement for certain issuers to publish interim management statements.

The 20 second summary

After much discussion and following on from the EU Directive amending the Transparency Directive, the FCA has published proposals removing the requirement for certain issuers to publish interim management statements.

FCA consultation

Under chapter 4 of the Disclosure Rules and Transparency Rules (the “DTRs”), issuers whose shares are admitted to trading on a regulated market, are required to publish interim management statements during the first and second half of the financial year.

In response to reviews on the operation of the Transparency Directive (“TD”), a Directive, amending the TD, was published by the European Commission in June 2013 removing the requirement for issuers to produce interim management statements on the grounds that this obligation was burdensome without being necessary for investor protection.

Member States have until November 2015 to implement this Directive in its entirety but the FCA, in response to the Government’s commitment to lessen the administrative burden on issuers and to shift the focus away from short-termism, wishes to bring these changes in earlier.  The FCA consultation paper proposes to remove DTR 4.3 together with minor consequential amendments.  If implemented, the proposals would affect issuers whose shares are admitted to trading on a regulated market where the UK is the home Member State and the DTRs apply.

Comments must be received by 4 September 2014.  We anticipate the proposals coming into effect later this year.

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