On 18 January 2021, the Investment Association (“IA”) published its shareholder priorities for listed companies in 2021. The publication: Assesses the progress made by listed companies on the four areas identified by investors as critical drivers of long-term value at the time of publication of the shareholder priorities for 2020; Sets outs IA member expectations for 2021; and Describes the approach which its corporate governance research service, the Institutional Voting Information Service (“IVIS”),…

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Limit on Corporate Directors: Consultation Opens

By Andrew Glaze

December 11, 2020

The Department for Business, Energy and Industrial Strategy has opened a consultation on the Government’s proposed approach to restricting the use of corporate directors as part of its larger package to enhance corporate transparency, reform Companies House and fight economic crime in the UK. On the one hand, corporate directors may be seen to weaken corporate governance by preventing individual accountability yet on the other, they may be a useful and legitimate option. The law…

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The Investment Association Publishes Views on 2021 Executive Remuneration

By Mark Simpson

November 24, 2020

On 16 November 2020, the Investment Association (“IA”) published amendments to its principles of remuneration for 2021 and updated its guidance on COVID-19 and executive pay. IA Principles The covering letter to chairs of remuneration committees of FTSE 350 companies highlights the main (minor) changes to the IA principles which essentially seek to clarify investor expectations on the following issues: The use of non-financial performance measures, in particular environmental, social and governance (“ESG”) related…

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The Future of Annual Reporting?

By Andrew Glaze

October 22, 2020

The FRC have published a discussion paper in which they question whether the traditional concept of the annual report remains fit for purpose. Arguably, annual reports are too long, impenetrable and fragmented. In looking at the future of corporate reporting, the challenge is how to balance the need for more concise reporting against demands for more transparency.…

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Stewardship Code 2020: Early Reporting

By Hannah Crosland

September 30, 2020

The Financial Reporting Council’s ambitious UK Stewardship Code 2020, effective 1 January 2020, required a new mandatory annual Stewardship Report to be published. This is challenging for investors as it requires reporting on stewardship activities actually undertaken and the outcomes actually achieved, not just stating intent or policy. Some institutions have already reported early and the FRC has published a report, “Review of Early Reporting“, which scrutinises those reports and concludes that…

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FCA Consultation on Climate-Related Financial Disclosures For 2021

By Hannah Kendrick

September 24, 2020

The Financial Conduct Authority’s consultation paper (CP 20/3) on climate-related disclosures proposes that a new listing rule will take effect for financial accounting periods beginning on or after 1 January 2021. There is a growing ground-swell around disclosure of all environmental, social and governance (“ESG”) related matters as issuers and investors become increasingly engaged with these issues. The FCA is not proposing to mandate disclosure at this point given that issuers’ reporting practices are still…

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UK IPO Trendwatch – the Outlook for Autumn 2020

By Nina Driver

August 21, 2020

Deal volumes over the past 18 months Looking back at IPO volumes in 2019 compared to 2018, we saw a 51% decrease in the aggregate number of IPOs across both the Main Market and AIM which is perhaps unsurprising given the uncertainty surrounding Brexit and concern stemming from global trade tensions. IPO activity levels since 2015 During the first quarter of 2020, as COVID-19 began to impact, we saw a handful of publicly announced postponements…

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Shareholder Rights Directive: New Regulations to Provide Confirmation of Shareholders’ Votes

By Phillipine Wiegand-Forson

July 27, 2020

The Companies (Shareholders’ Rights to Voting Confirmations) Regulations 2020 (“Regulations”) have been published and are due to come into force on 3 September 2020. The Regulations complete the UK’s transposition of Chapter 1a of EU Directive 2017/828 (amending Directive 2007/36/EC), or more commonly known as the Shareholder Rights Directive. New rule The Regulations apply to “traded companies”, which is defined in section 360C of the Companies Act 2006 (“Act”). Companies which have their shares listed…

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Legal Privilege In The Current Climate and How Not To Lose It

By Hannah Kendrick, Victoria Leigh & Matthew Campbell

July 7, 2020

Company directors will deal regularly with questions and issues that require some legal input, whether that comes internally or from private practice. Most will be aware that some legal communications attract privilege but less well-understood are the myriad pitfalls that can cause an inadvertent waiver of that legal protection. The post COVID-19 environment sees an ever-increasing volume of work, including board meetings, being carried out remotely by email and telephone or video conference, regulators aggressively…

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International Corporate Governance Network – Governance Priorities During the COVID-19 Pandemic

By Harry Hobson & Philip Mabbott

April 30, 2020

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On 23 April 2020, the International Corporate Governance Network (ICGN) published an open letter, setting out governance priorities aimed at executive management, board directors and investors, which aims to help companies maintain viability during the COVID-19 outbreak and its aftermath. The ICGN letter advocates that board directors and investors have a “shared interest” and therefore a “shared responsibility” to promote the success of companies in a way that “preserves and enhances long-term value, contributing to…

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The latest news on law and regulation in the capital markets

Blog Authors

The Investment Association – Shareholder Priorities for 2021

Limit on Corporate Directors: Consultation Opens

The Investment Association Publishes Views on 2021 Executive Remuneration

The Future of Annual Reporting?

Stewardship Code 2020: Early Reporting

FCA Consultation on Climate-Related Financial Disclosures For 2021

UK IPO Trendwatch – the Outlook for Autumn 2020

Shareholder Rights Directive: New Regulations to Provide Confirmation of Shareholders’ Votes

Legal Privilege In The Current Climate and How Not To Lose It

International Corporate Governance Network – Governance Priorities During the COVID-19 Pandemic

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