UK: the new listing regime

Changes to the Listing Regime come into effect today, with the creation of two segments: premium and standard. For further information see here. The revised Listing Rules are available here. Overseas companies with a premium listing of equity shares will be required to 'comply or explain' against the UK's Combined Code on Corporate Governance.

UK: the listing regime review - FSA publishes policy statement and final rules

The Financial Services Authority has published a policy statement marking the end of its three year review of the listing regime: see here (pdf). The statement contains final rules which will restructure the regime into two listing segments: standard (based on EU minimum standards) and premium (denoting more stringent super-equivalent requirements). Further information about the review is available here.

UK: revised AIM Rules for Companies published

An updated edition of the AIM Rules for Companies has been published, following a consultation last year: see here (pdf). A copy of the Rules, with the changes highlighted, is available here (pdf). The new Rules require the disclosure of directors' remuneration in the annual accounts (for financial years ending on and after 31 March 2010) and also provide for the electronic communication of annual reports and accounts (with immediate effect).

UK: Audit Firm Governance Code published

The ICAEW's Audit Firm Governance Working Group has today published a governance code for firms auditing public interest entities: see here. The following firms, which between them audit approximately 95% of companies listed on the main market of the London Stock Exchange, will be subject to the code: Baker Tilly, BDO, Deloitte, Ernst & Young, Grant Thornton, KPMG, PKF and PricewaterhouseCoopers.

The code was prepared at the request of the Financial Reporting Council, as part of its audit choice project, and will operate on the 'comply or explain' basis. The code's purpose, to quote from its introduction, is to:

... provide a formal benchmark of good governance practice against which firms which audit listed companies can report for the benefit of shareholders in such companies".

The Code has six sections (leadership, values, independent non-executives, operations, reporting and dialogue) and, like the UK's Combined Code on Corporate Governance, contains principles and provisions. For example, principle C.1. provides:

A firm should appoint independent non-executives who through their involvement collectively enhance shareholder confidence in the public interest aspects of the firm’s decision making, stakeholder dialogue and management of reputational risks including those in the firm’s businesses that are not otherwise effectively addressed by regulation".

For further information see: ICAEW Working Group press release (pdf) and background information | FRC audit choice project |