12 May 2013
The Institute of Chartered Accountants in England and Wales published a new technical guidance note (Tech 01/13CFF) in March 2013 (with an effective implementation date of 1 September 2013) giving “Guidance on financial position and prospects procedures” on London IPOs.
The note is here. From the ICAEW’s covering note on its website:
“ICAEW has published guidance that addresses a regulatory requirement of companies seeking a listing (or admission to trading) on a UK market.
Directors of a company that is seeking a Premium Listing of its shares on the Main Market of the London Stock Exchange have a regulatory obligation to have established procedures that provide a reasonable basis for them to make proper judgements on an ongoing basis about the company’s financial position and prospects. There are also regulatory requirements regarding financial position and prospects (FPP) procedures for companies seeking an admission to trading on AIM or the ISDX Growth Market. A reporting accountant will usually be requested to perform services in this regard.
Technical Release TECH 01/13CFF was published following a consultation launched in June 2010 and an exposure draft published in March 2012. TECH 01/13CFF is aimed at:
- directors of companies preparing for an IPO, explaining how they can demonstrate that they have established FPP procedures to address relevant objectives and;
- reporting accountants undertaking an assurance engagement to address relevant objectives and providing an assurance report in relation to FPP procedures established by directors.
TECH 01/13CFF replaces the guidance in FRAG 10/95 The London Stock Exchange Listing Rules paragraphs 2.11 and 2.8. It should be implemented by 1 September 2013.”
21 January 2013
The snappily-named Listing Rules Joint Working Party of the Company Law Committees of the Law Society of England and Wales and the City of London Law Society has published its response to the FSA’s October 2012 consultation on “Enhancing the effectiveness of the Listing Regime” (we discussed the consultation in this post).
See also: A new route to the UK IPO market: Government plans to relax rules to attract high-growth companies to list on London
10 October 2012
This excellent Bloomberg article details the various ways in which the SEC pressed Facebook for fuller and more accurate disclosures about its business ahead of its shambolic IPO. Excerpts:
read more »
2 October 2012
In a new consultation paper published today, the Financial Services Authority – in its guise as the UK Listing Authority – has announced that it is consulting on:
- changes to the free float requirements for both the premium and standard listing segments on the Main Market; and
- introducing a new controlling shareholder concept.
read more »
1 October 2012
Xavier Rolet, Chief Executive of the London Stock Exchange, on why smaller growth companies “”not a mortgage, but equity funding”, and on the reforms needed to encourage equity investment in those companies:
“There…remain important structural reasons that are holding back private investors from funding our growth companies. Arguably the most significant is the tax treatment of equity: taxed at purchase, dividend and sale, in addition to the corporation tax paid on company profits, equities are treated aggressively while debt is often tax-deductible. Reducing tax on capital gains made from direct and indirect investment in smaller companies would also help boost liquidity by attracting more investors. And, a targeted abolition of stamp duty for Aim and PLUS-quoted shares would be a particularly low-cost and effective measure to promote growth.”
See also: A new route to the UK IPO market: Government plans to relax rules to attract high-growth companies to list on LondonA new route to the UK IPO market: Government plans to relax rules to attract high-growth companies to list on London
Follow us on Twitter @CoFinLaw
20 September 2012
Having been trailed at the end of August, the FT confirms this morning that the UK government is to consult on measures designed to encourage high-growth tech companies to list on London:
- Shares in public hands requirement to be reduced to 10% from 25%.
- Three year past accounts rule to be relaxed.
- Requirement for independent non-executive directors to be reduced.
The consultation will be announced today.
UPDATE: BIS has now given some more details of these “ambitious proposals with the London Stock Exchange to attract entrepreneurs and high-growth companies” to IPO in London:
read more »