Dual disclosure standard - Revision history

Doug: Remove surplus text.

2024-06-20T11:00:46Z

Remove surplus text.

← Older revision		Revision as of 11:00, 20 June 2024
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	''Bonds - wholesale - retail - regulation - disclosure - UK - Financial Conduct Authority (FCA).''		''Bonds - wholesale - retail - regulation - disclosure - UK - Financial Conduct Authority (FCA).''

	The UK requires more disclosure for issuances of bonds with a denomination ~~per unit~~ below €100,000 than for bonds with a denomination at or above €100,000.		The UK requires more disclosure for issuances of bonds with a denomination below €100,000 than for bonds with a denomination at or above €100,000.

	This dual disclosure standard was intended to protect retail investors ~~protection measure~~.		This dual disclosure standard was intended to protect retail investors.

	It also created an incentive for issuers to issue high denomination bonds to avoid the additional disclosure obligations for lower denomination bonds.		It also created an incentive for issuers to issue high denomination bonds to avoid the additional disclosure obligations for lower denomination bonds.

Doug: Layout.

2024-06-20T10:52:41Z

Layout.

← Older revision		Revision as of 10:52, 20 June 2024
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	:"Most saliently, the two standards diverge as follows:		:"Most saliently, the two standards diverge as follows:
	:* Only prospectuses for retail securities must include a summary.		:* Only prospectuses for retail securities must include a summary.
	:* In retail prospectuses, additional details on the issuer’s history and development,		:* In retail prospectuses, additional details on the issuer’s history and development, trends, business and share capital are required, as well as inclusion of cash flow statements and quarterly or half yearly financial information.
	trends, business and share capital are required, as well as inclusion of cash flow		:* More permissive requirements in regards to accounting standards for wholesale prospectuses.
	statements and quarterly or half yearly financial information.		:* Retail disclosure standard requires details of the offer of securities to the public and additional narrative explaining certain complex features."
	:* More permissive requirements in regards to accounting standards for wholesale
	prospectuses.
	:* Retail disclosure standard requires details of the offer of securities to the public
	and additional narrative explaining certain complex features."

	:''Main differences between retail and wholesale disclosure requirements - FCA - Engagement Paper 4: Non-equity securities - May 2023 - p7.''		:''Main differences between retail and wholesale disclosure requirements - FCA - Engagement Paper 4: Non-equity securities - May 2023 - p7.''
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	*[https://www.fca.org.uk/publication/call-for-input/non-equity-securities-engagement-paper-4.pdf Engagement paper - non-equity securities - FCA - May 2023]		*[https://www.fca.org.uk/publication/call-for-input/non-equity-securities-engagement-paper-4.pdf Engagement paper - non-equity securities - FCA - May 2023]

	~~[[Category:Accounting,_tax_and_regulation]]~~
	~~[[Category:Financial_products_and_markets]]~~

	[[Category:Accounting,_tax_and_regulation]]		[[Category:Accounting,_tax_and_regulation]]
	[[Category:Financial_products_and_markets]]		[[Category:Financial_products_and_markets]]

Doug: Create page - source ACT - https://www.treasurers.org/hub/treasurer-magazine/fca-boss-hints-adopting-wider-access-bond-market-this-year

2024-06-20T10:51:18Z

Create page - source ACT - https://www.treasurers.org/hub/treasurer-magazine/fca-boss-hints-adopting-wider-access-bond-market-this-year

New page

''Bonds - wholesale - retail - regulation - disclosure - UK - Financial Conduct Authority (FCA).''

The UK requires more disclosure for issuances of bonds with a denomination per unit below €100,000 than for bonds with a denomination at or above €100,000.

This dual disclosure standard was intended to protect retail investors protection measure.

It also created an incentive for issuers to issue high denomination bonds to avoid the additional disclosure obligations for lower denomination bonds.

:<span style="color:#4B0082">'''''Single bond disclosure standard expected'''''</span>

:"The FCA is now proposing to adopt a single standard for bond disclosures, which could re-open the retail corporate bond market that had been closed by regulatory changes nearly 20 years ago.

:Nikhil Rathi, the FCA's CEO, told the treasury forum: 'This is so important for buy-in to our capital markets and our capitalist system that retail, and individual investors and employees can participate. Advisers can sometimes be a bit nervous about this, but we hope that people do embrace it.'"

:''FCA boss hints at adopting wider access to bond market ‘this year’ - Philip Smith - The Treasurer online - June 2024.''

:<span style="color:#4B0082">'''''Main divergences in dual disclosure standard'''''</span>

:"Most saliently, the two standards diverge as follows:
:* Only prospectuses for retail securities must include a summary.
:* In retail prospectuses, additional details on the issuer’s history and development,
trends, business and share capital are required, as well as inclusion of cash flow
statements and quarterly or half yearly financial information.
:* More permissive requirements in regards to accounting standards for wholesale
prospectuses.
:* Retail disclosure standard requires details of the offer of securities to the public
and additional narrative explaining certain complex features."

:''Main differences between retail and wholesale disclosure requirements - FCA - Engagement Paper 4: Non-equity securities - May 2023 - p7.''

== See also ==
* [[Admission to trading]]
* [[Association of Corporate Treasurers]] (ACT)
* [[Bond]]
* [[Corporate bond]]
* [[Denomination]]
* [[Disclosure]]
* [[Financial Conduct Authority]] (FCA)
* [[Investor]]
* [[Issuer]]
* [[Offer for sale]]
* [[Order book for Retail Bonds]] (ORB)
* [[Primary market]]
* [[Prospectus]]
* [[Prospectus Directive]]
* [[Regime]]
* [[Regulation]]
* [[Retail]]
* [[Retail bond]]
* [[Seasoned issuer]]
* [[Security]]
* [[Wholesale bond]]
* [[Wholesale markets]]

==Other resources==

*[https://www.fca.org.uk/publication/feedback/engagement-feedback-new-public-offers-admissions-trading-regime.pdf Engagement feedback on the new public offers and admissions to trading regime - Financial Conduct Authority (FCA) - December 2023]

*[https://www.treasurers.org/hub/treasurer-magazine/fca-boss-hints-adopting-wider-access-bond-market-this-year FCA boss hints at adopting wider access to bond market ‘this year’ - Philip Smith - The Treasurer online - June 2024]

*[https://www.fca.org.uk/news/speeches/bellwethers-economy-need-engage-corporate-treasurers-shape-our-markets Speech by Nikhil Rathi, FCA Chief Executive, delivered at the Association of Corporate Treasurers Annual Conference 2024]

*[https://www.fca.org.uk/publication/call-for-input/non-equity-securities-engagement-paper-4.pdf Engagement paper - non-equity securities - FCA - May 2023]

[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]

[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_products_and_markets]]