A NOTEPAD ON COMPANY AND FINANCIAL LAW, NEWS AND REGULATION
ICAP has today increased its offer for the PLUS Markets stock exchange business – and PLUS’s recognised investment exchange authorisation – by £500,000, following opposition to the deal from some PLUS Markets shareholders (see our story “Handbags at PLUS Markets”).
The shareholder vote to approve the sale to ICAP is on 18 June 2012.
It’s hardly the whole story, but here is a clearly-written explanation (from the final report of the Sharman Inquiry) of why one of the basic purposes of banks – maturity transformation – makes them inherently unstable:
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The Sharman Inquiry on “Going Concern and Liquidity Risk: Lessons for companies and auditors” published its final report and recommendations on 13 June 2012. The final report is here and the Financial Reporting Council’s accompanying press release is here.
The Inquiry was established by the FRC in March 2011, as we reported here, to “identify lessons for companies and auditors addressing going concern and liquidity risk” arising from the financial crisis. Amongst the Inquiry’s terms of reference were:
• “How companies ensure the adequacy, timeliness and reliability of the internal information used to monitor going concern and liquidity risk; and
• Whether the going concern and liquidity risk disclosures required by IFRS, the UK Corporate Governance Code and the Listing Rules provide timely and relevant information for all stakeholders.”
The Inquiry issued its interim report in November 201 (see our summary here).
Purpose of a company’s going concern assessment
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HM Treasury has today published a White Paper setting out how the Government intends to implement the Independent Commission on Banking’s recommendations that retail and investment banking in UK banks should be separated and the retail operation ring-fenced.
The White Paper is here. The Financial Secretary launched the White Paper with this statement to Parliament, the key passages of which are:
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