Capital Markets Update: October 2022

September’s news

FRC publishes thematic review on earnings per share

On 8 September 2022, the Financial Reporting Council (FRC) published Thematic review: Earnings per share (IAS 33), which considers the requirement for companies with listed ordinary shares to report earnings per share in accordance with IAS 33 in their interim and annual reports.

Proposed changes to the structure of the listing regime

On 9 September 2022, the City of London Law Society (CLLS) published the response submitted by a joint working party of the Company Law Committees of the CLLS and the Law Society of England and Wales to the Financial Conduct Authority (FCA) discussion paper on the structure of the listing regime.

FRC publishes review of deferred tax reporting

On 21 September 2022, the FRC published Thematic Review: Deferred tax assets, which sets out findings from its review of disclosures of deferred tax assets in listed companies’ annual reports and accounts.  The review was prompted by increased recognition of material deferred tax assets by companies reporting losses after the COVID-19 pandemic.

FRC Lab publishes report on mandatory digital reporting

On 23 September 2022, the FRC Lab published a report which reviews the first year of mandatory structured electronic reporting by UK listed companies. The report sets out the findings of the Lab’s review and highlights where improvements are needed to companies’ processes, the usability and design of reports and data tagging.

ESMA updates MAR Q&A

On 23 September 2022, the European Securities and Market Authority (ESMA) published an updated version of its Q&A on the EU Market Abuse Regulation. ESMA added two Q&A relating to the disclosure of inside information.

Response to consultation on amendments to the definition of ‘acting in concert’

On 23 September 2022, the City of London Law Society published the Response submitted by a Joint Working Party of the Company Law Committees of the CLLS and the Law Society of England and Wales to a public consultation setting out a number of proposed amendments to the presumptions of the definition of ‘acting in concert’ in the Takeover Code.

QCA announces new chief executive

On 26 September 2022, the Quoted Companies Alliance (QCA) announced that James Ashton is to be appointed as its next chief executive.

AQSE announces changes to admission rules

On 27 September 2022, Aquis Stock Exchange (AQSE) published its response to the consultation on proposed changes to the rules governing admission to both the Access and Apex segments of the AQSE Growth Market. The amended rules will be effective from 3 October 2022.

FRC publishes review of reporting for business combinations

On 29 September 2022, the FRC published a report summarising the key findings of its first thematic review of company accounting and reporting for business combinations. The review analysed the annual reports of 20 companies with year-ends falling between December 2021 and March 2022, and which included a business combination.

Looking ahead to October 2022

3 October – new AQSE admission rules come into effect.

10 October – closing date for responses to the FCA’s consultation on broadening retail access to the long-term asset fund.

21 October – closing date for responses to the FRC’s consultation on its proposals to fund the Audit, Reporting and Governance Authority (ARGA).

31 October – closing date for applications to become a signatory to the UK Stewardship Code 2020.