.jpg) Details of current consultation exercises relevant to the corporate governance area, together with links to further information, the consultation documents and the deadline for comment.
Proposals for new FRC funding arrangements
Date: 1 July 2008
Deadline for comment: 5 September 2008
The FRC has published proposals for a new basis for funding its responsibilities for accounting, auditing and corporate governance. The need for new funding arrangements follows the Government's announcement in February 2008 that these costs should in future be funded largely by market participants. At present, the Government pays about a third of these costs, approximately £3.5m a year. The FRC intends to replace the Government grant through a combination of extending the groups of market participants which are subject to, or have regard to, the regulatory requirements which it sets, influences, monitors or enforces.
For further information, please visit http://www.frc.org.uk/press/pub1645.html
HM Treasury launches consultation on protecting investors rights
Date: 17 July 2008
Deadline for comment: 9 October 2008
HM Treasury has launched a consultation on extending the statutory regime on liability for fraudulent misstatement by issuers of securities. This consultation responds to last year's review by Professor Paul Davies Q.C. of the statutory regime, which recommended that the scope of the system should be extended to provide greater security for both investors and issuers.
In his review Professor Davies recommended that the regime should be extended to include: - More issuers (the extended regime will include issuers with securities admitted to trading on UK multilateral trading facilities, such as AIM and the PLUS-quoted market, and UK issuers with securities admitted to trading on other EEA markets);
- A wider range of ad hoc and periodic disclosures made by issuers and markets;
- Losses arising from sales (as well as purchases) of securities;
- Losses arising from a dishonest delay in disclosure.
By clarifying rights and obligations, it is hoped an extended statutory regime will improve the quality of corporate disclosure and reduce the risks facing investors and issuers.
For further information, please visit: http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2008/press_79_08.cfm
Going concern and financial reporting: Proposals to revise the guidance for directors of listed companies
Date: 29 August 2008
Deadline for comment: 24 November 2008
The Financial Reporting Council has published a consultation paper setting out its proposals to revise the Guidance for Directors of Listed Companies on Going Concern and Financial Reporting. The Listing Rules of the Financial Services Authority and the Irish Stock Exchange require the annual reports of listed companies to include a statement by the directors on the going concern status of the company. In making their statement, directors are required to consider the guidance contained in 'Going Concern and Financial Reporting: Guidance for directors of listed companies registered in the United Kingdom', which was published in 1994.
The consultation paper has been produced on the assumption that the Guidance for Directors, and in particular the disclosure requirements should continue to exist. However, the FRC acknowledges that developments in accounting standards and markets may mean that the guidance needs to be refreshed. Accordingly, the consultation paper contains a proposed updated version of the existing Guidance for Directors. Amendments have been kept to the minimum necessary and the views of stakeholders are sought as to whether more fundamental change is necessary.
For further information, please visit http://www.frc.org.uk/press/pub1683.html |
