Consent solicitation and Recognised stock exchange: Difference between pages

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''Securities - debt - bonds - bond indenture''
(RSE).


A consent solicitation is a formal offer by the issuer of a security to change the terms of the security agreement.  
1. ''UK tax.''


For example, a bond issuer might ask bondholders if the terms of a LIBOR-linked bond indenture may be changed, in order to transition to another appropriate benchmark rate.  
A stock exchange recognised by HM Revenue & Customs for the purposes of identifying securities as either 'listed' or 'not listed' for the purposes of UK tax legislation, and therefore potentially eligble for more favourable tax treatment.


Consent solicitations are necessary, because security agreements need mutual consent in order for them to be changed.


2.


:<span style="color:#4B0082">'''''Transitioning LIBOR-linked bonds'''''</span>
Similar designations in other jurisdictions.


:"The key message for issuers is that they should now be actively transitioning their outstanding LIBOR-linked bonds through consent solicitations or other methods, and clearly communicating their plans to their investors, and in a timely manner.


:Investment managers are aware that some issuers have been reluctant to launch proposals for fear of not gathering sufficient support, and would like to make it clear that investors are fully supportive of the transition process.
== See also ==
* [[Equity market]]
* [[His Majesty's Revenue & Customs]]  (HM Revenue & Customs - HMRC)
*[[Internal Revenue Service]]  (IRS)
* [[Jurisdiction]]
* [[Listing]]
* [[New York Stock Exchange]]
* [[Recognised investment exchange]]
* [[Regulatory News Service]]
* [[Security]]
* [[Stock]]
* [[Stock exchange]]


:To this end, the IA's report also includes a list of the key features LIBOR-transition consent solicitations should have in order to maximise the chance of success - these features include strong engagement, awareness of existing regulator and industry body announcements and recommendations, and a clear focus on LIBOR transition as opposed to other matters."


:''Hugo Gordon, Policy Specialist, Capital Markets, from The Investment Association - ACT guest blog - 15 July 2021''
==External link==
 
[https://www.gov.uk/government/publications/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007/designated-recognised-stock-exchanges-section-1005-income-tax-act-2007-v3 UK HM Revenue & Customs - Designated recognised stock exchanges]
 
==See also==
*[[Benchmark]]
*[[Bond]]
*[[Bondholder]]
*[[Bond indenture]]
*[[LIBOR]]
*[[Risk-free rates]]
*[[The Investment Association]] (IA)
*[[Tough legacy]]
*[[Transition]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]

Latest revision as of 15:30, 28 September 2022

(RSE).

1. UK tax.

A stock exchange recognised by HM Revenue & Customs for the purposes of identifying securities as either 'listed' or 'not listed' for the purposes of UK tax legislation, and therefore potentially eligble for more favourable tax treatment.


2.

Similar designations in other jurisdictions.


See also


External link

UK HM Revenue & Customs - Designated recognised stock exchanges