Premium or standard?

The FSA has recently published its Policy Statement and Consultation Paper (CP09/24) on the changes which implement its review of the listing regime. Following its consultation, the FSA decided not to make any major structural changes and instead to focus on segmentation and labelling arrangements....

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Bibliographic Details
Published in:International Financial Law Review 2009-11
Main Authors: Pearce, Will, Asmar, Martina, Maguire, Stephanie
Format: Magazinearticle
Language:English
Subjects:
Corporate governance
Disclosure
EU directives
Insider trading
Labeling
Regulation of financial institutions
Related party transactions
Securities markets
Shareholder approval
Shareholders rights
Stockholders
Online Access:Get full text
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Summary:The FSA has recently published its Policy Statement and Consultation Paper (CP09/24) on the changes which implement its review of the listing regime. Following its consultation, the FSA decided not to make any major structural changes and instead to focus on segmentation and labelling arrangements. It did however make significant policy changes in respect of the corporate governance of, and pre-emption rights for shareholders in, overseas companies with a premium listing and to the ability of a UK company to have a standard listing. The effective date for most of the new rules is 6 April 2010. However, the FSA has decided to bring forward the timetable for making a standard listing available to UK companies and the rule changes to implement this were effective from 6 October 2009. With effect from April 6 2010, companies will be allowed to migrate between the premium and standard segments, without cancelling their listings. In a significant change to the existing position, all premium listed overseas companies will have to comply or explain against the UK Combined Code on corporate governance and give pre-emption rights to their existing shareholders on any further share issues. The FSA believes that the UK Combined Code is sufficiently flexible to allow overseas companies to explain the stance they have taken on some key corporate governance concepts where their local practice does not accord with those set out in the UK Combined Code.
ISSN:0262-6969