Blocking Regulation and Premium Listing: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Source: The Treasurer, October 2018, p43.)
 
imported>Doug Williamson
(Add quote. Source: ACT ESG blog 19 Feb 2021 https://www.treasurers.org/hub/blog/ESG/Update-February-2021)
 
Line 1: Line 1:
''Sanctions''.
''London Stock Exchange.''


The Blocking Regulation is a 1996 European Union (EU) Regulation which prohibits EU companies from complying with certain extraterritorial US sanctions.
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.


<span style="color:#4B0082">'''''Managing conflicting rules'''''</span>
A Premium Listing means the company is expected to meet the UK’s highest standards of regulation and corporate governance.


:"The US's reimposition of sanctions against Iran prompted the European Commission to expand the scope of the 1996 EU Blocking Regulation.
As a consequence the company may enjoy a lower cost of capital, through greater transparency and through building investor confidence.


:The revised Blocking Regulation... in essence prohibits EU companies from complying with the reimposed US sanctions against Iran.


:<span style="color:#4B0082">'''''Climate risk disclosures'''''</span>


:The Blocking Regulation is often described as putting those within its scope (EU companies, nationals and others within the EU) between a rock and a hard place.
:"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.  


:Non-compliance may give rise to civil and, potentially, criminal penalties.
: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).  


:However, the penalties for a non-US person failing to comply with the US's secondary sanctions can include being cut off from the US financial system - and being unable to deal with US persons."
: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. "


:''The Treasurer, October 2018, p43 - Slaughter and May.''
:''ACT blog, 19 February 2021 - Naresh Aggarwal, Associate Director, Policy & Technical.''




== See also ==
== See also ==
* [[Cost of capital]]
* [[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]]


* [[European Commission]]
[[Category:Accounting,_tax_and_regulation]]
* [[European Union]]
* [[Regulation]]
* [[Sanctions]]
* [[United States]]

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