Capital Markets Update – November 2021

2nd November 2021

Welcome to the current edition of Capital Markets Update, the monthly briefing from the Corporate Group at Walker Morris rounding up the previous month’s regulatory developments within the equity capital markets and looking ahead to future developments.

October’s news

FRC publishes thematic review

On 7 October 2021, the Financial Reporting Council (FRC) published a thematic review into the use of Alternative Performance Measures (APMs) by 20 companies listed in the UK to assess the quality of APM reporting.

New Panel Bulletins launched

On 11 October 2021, the Takeover Panel announced that, in addition to Practice Statements, the Panel Executive will periodically publish ‘Panel Bulletins’. The aim of these publications is to remind practitioners and market participants of the operation of specific provisions of the Takeover Code in response to issues which arise on live transactions.

UK secondary capital raising review launched

On 12 October 2021, HM Treasury announced the launch of the UK Secondary Capital Raising Review, an expert group which will consider how to improve secondary capital raising processes for UK listed companies and make appropriate recommendations to Government. A call for evidence closes on 16 November 2021.

FRC Lab report on digital reporting

On 12 October 2021, the FRC Lab published a report which aims to support companies in the move towards structured electronic reporting.

2022 Dividend Procedure Timetable published

On 12 October 2021, London Stock Exchange plc (LSE) published its 2022 Dividend Procedure Timetable, which is issued on an annual basis as a guide for companies with shares listed on the Official List or admitted to trading on AIM on setting their interim and final dividend programmes.

FRC publishes review on contingent liability reporting

On 14 October 2021, the FRC published Thematic Review: IAS 37 Provisions, Contingent Liabilities and Contingent Assets, which considers recent reporting by UK-listed companies on provisions and contingent liabilities in accordance with IAS 37.

TCFD publishes 2021 status report

On 14 October 2021, the Task Force on Climate-related Financial Disclosures (TCFD) published its 2021 Status Report which sets out how disclosures of climate-related financial information aligned with TCFD recommendations have developed since its 2020 annual review of climate-related reporting.

LSE publishes climate reporting guidance

On 20 October 2021, the LSE published a new guide on climate reporting which is designed to provide listed and AIM companies with practical advice on integrating best practice climate-related disclosures into their financial reporting. The guidance has been published as part of the LSE’s newly launched Climate Transition Offering which aims to help companies prepare for the transition to a low-carbon economy and produce effective climate reporting.

FRC publishes annual review of corporate reporting

On 27 October 2021, the FRC published its Annual Review of Corporate Reporting 2020/21. The review sets out the FRC’s view of the current state of UK corporate reporting and identifies areas for improvement.

Mandatory reporting on climate-related risk and opportunities

On 28 October 2021, the FRC Lab published a report to help premium listed companies prepare for the new continuing obligation under the Listing Rules to report on a comply or explain basis against climate-related disclosures, which applies to accounting periods beginning on or after 1 January 2021.

Looking ahead to November 2021

10 November – responses to the Competition and Markets Authority’s consultation on how the competition and consumer regimes could better support the UK’s net zero and environmental sustainability goals are requested by this date.

15 November – closing date for parties to express an interest in participating in the Financial Reporting Lab’s project looking at how companies produce data on ESG issues.

16 November – closing date for responses on how to improve secondary capital raising.