Kay Review and Premium Listing: Difference between pages

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A government sponsored review into UK equity markets established in 2011 and led by Professor John Kay.
''London Stock Exchange.''


The review was established to ask how well equity markets are achieving the following core purposes:
A Premium Listing on the London Stock Exchange is only available to equity shares issued by trading companies and closed and open-ended investment entities.


1. Enhancing the performance of UK companies by facilitating investment and enabling effective governance and decision making in support of long-term profitability and growth; and
Issuers with a Premium Listing are required to meet the UK’s super-equivalent rules, which are higher than the EU minimum requirements for a Standard Listing.


2. Enabling investors to benefit from this corporate activity in the form of returns from equity investment.  
A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance.


The review was designed assess to what extent equity market participants are excessively focused on short-term outcomes to the detriment of the core purposes (1. and 2. noted above) and if so, what actions should be taken to address this problem.  
As a consequence the company may enjoy a lower cost of capital, through greater transparency and through building investor confidence.


It therefore examines the incentives, motivations and timescales of the following participants in the equity markets – end investors, pension funds, advisers, fund managers, the market and company boards – and also the relationships between them.


The Kay Report published in 2012 was welcomed by the UK Government in its response of the same year.
:<span style="color:#4B0082">'''''Climate risk disclosures'''''</span>


The Report is undergoing Commons Select Committee scrutiny.
:"The Financial Conduct Authority (FCA) implemented a new Listing Rule applicable to premium listed commercial companies designed to help users understand how they are managing climate-related risks.  
 
:The new Rule (LR 9.8.6(8)) does this by requiring disclosures in annual reports consistent with the recommendations and recommended disclosures of the Task Force on Climate-related Disclosures (TCFD).
 
:The Rule will apply to accounting periods beginning on or after 1 January 2021 with the first annual financial reports under the new rule will be published in the spring of 2022. "
 
:''ACT blog, 19 February 2021 - Naresh Aggarwal, Associate Director, Policy & Technical.''




== See also ==
== See also ==
* [[Corporate governance]]
* [[Cost of capital]]
* [[Equity]]
* [[Equity]]
* [[Financial Conduct Authority]]
* [[Investor relations]]
* [[Listing]]
* [[Listing particulars]]
* [[Listing Rules]]
* [[London Stock Exchange]]
* [[Main Market]]
* [[Premium]]
* [[Standard Listing]]
* [[Task Force on Climate-related Financial Disclosures]]
* [[Transparency]]
* [[UK Corporate Governance Code]]


[[Category:Equity]]
[[Category:Accounting,_tax_and_regulation]]

Revision as of 10:57, 11 March 2021

London Stock Exchange.

A Premium Listing on the London Stock Exchange is only available to equity shares issued by trading companies and closed and open-ended investment entities.

Issuers with a Premium Listing are required to meet the UK’s super-equivalent rules, which are higher than the EU minimum requirements for a Standard Listing.

A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance.

As a consequence the company may enjoy a lower cost of capital, through greater transparency and through building investor confidence.


Climate risk disclosures
"The Financial Conduct Authority (FCA) implemented a new Listing Rule applicable to premium listed commercial companies designed to help users understand how they are managing climate-related risks.
The new Rule (LR 9.8.6(8)) does this by requiring disclosures in annual reports consistent with the recommendations and recommended disclosures of the Task Force on Climate-related Disclosures (TCFD).
The Rule will apply to accounting periods beginning on or after 1 January 2021 with the first annual financial reports under the new rule will be published in the spring of 2022. "
ACT blog, 19 February 2021 - Naresh Aggarwal, Associate Director, Policy & Technical.


See also

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