UK: FRC seeks views on merger with UKLA

The Financial Reporting Council has published a short statement and an invitation for comment on the Government's proposal to merge the UKLA with the FRC: see here (pdf). To quote from the statement:

The FRC believes that regulation must be undertaken with the greatest possible understanding of how business works, of how to give justified confidence to investors and of how to preserve and develop the international strength of the UK’s capital markets. We take the Government’s proposal as a vote of confidence in the FRC’s model of regulation, which involves close engagement with companies, investors and other market participants.

The FRC is keen that such proposals can be implemented effectively if the Government decides to proceed. It therefore welcomes the views of its stakeholders on the Government’s proposal to help it prepare its own response to the consultation. The FRC believes it is important that any such change is achieved as efficiently as possible and that the current strengths of both organisations are preserved".

UK: the UKLA, FRC and companies regulation

As noted yesterday, HM Treasury has published a consultation paper setting out in more detail its proposals for reform of the UK financial regulatory structure: see here (pdf). The paper has raised an interesting question about the role of the Financial Reporting Council and the regulation of companies. To quote from paras. 5.21 and 5.22:

The Government believes that the functions of the UKLA [currently performed by the FSA] could be merged with other regulatory functions relating to companies and corporate information, notably those of the Financial Reporting Council (FRC). This would have the benefit of bringing the UKLA’s regulation of primary market activity alongside FRC functions relating to company reporting, audit and corporate governance. The Government is therefore considering whether the UKLA should be merged with the FRC under the Department for Business, Innovation and Skills (BIS), or whether it should remain within the [proposed] CPMA markets division.

The Government believes that, within the proposed new regulatory architecture, there is a strong case for a powerful companies regulator established with responsibilities for regulating corporate governance, corporate information and its disclosure, and the stewardship of companies by institutional shareholders. This is a matter on which BIS will bring forward detailed proposals for consultation in due course, but the merger of the UKLA and FRC would be an important step towards such a reform".

UK: FSA quarterly consultation - sponsor regime changes proposed

In its July 2008 quarterly consultation the UK's Financial Services Authority outlined proposed changes to the FSA Handbook including the following changes to the Listing Rules with regard to the sponsor regime:

• Requiring an issuer to appoint a sponsor satisfying the requirement to be independent.
• Giving the UKLA the ability to require a sponsor to disclose information to the UKLA that it reasonably requires.
• Making the appointment of an independent sponsor an approval condition for a circular. 

For further information see:
Consultation paper | Newsletter | FSA Handbook | Listing Rules | Sponsors | 

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.