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PDF Disclosure Guidance and Transparency Rules sourcebook - FCA

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The disclosure requirements and disclosure guidance apply to all persons to whom the FCA is required to apply the disclosure provisions of the Market Abuse Regulation in accordance with Article 22 of this Regulation. The FCA may also require the issuer, the person exercising management responsibilities, the related person or their advisers to provide information in writing.

Notification when a RIS is not open for business

Suspension of trading

If trading in an issuer's financial instruments is suspended, the issuer, any person exercising managerial responsibility and any connected person must continue to comply with all applicable disclosure requirements. Examples of when the FCA may require the suspension of trading in a financial instrument include:.

Fees and sanctions

Sanctions

Introduction Annex 2

The provisions outlined in DTR 1 Annex 2 in relation to fees are set out 1 in FEES 4 Annex 8R

Disclosure Guidance and Transparency Rules sourcebook

1A.1 Application and purpose (Transparency rules)

Purpose

FCA performing functions as competent authority

1A.2 Modifying rules and consulting the FCA

Modifying or dispensing with rules

Early consultation with FCA

1A.3 FCA may require the publication of information

Misleading information not to be published

Transparency rules)

1A.4 Fees

1B.1 Application and purpose (Corporate governance)

Purpose: Audit committees

Application: Audit committees

Exemptions

Purpose: Corporate governance statements

Application: Corporate governance statements

Purpose: Related party transactions

Application: Related party transactions

1B.2 Modifying rules and consulting the FCA

1C.1 Application and purpose (Primary information providers)

1C.2 Modifying rules and consulting the FCA

Disclosure and control of

Introduction and purpose

Introduction

Disclosure of inside information

Requirement to disclose inside information

Identifying inside information

The decision as to whether a piece of information is inside information may be carefully weighed and the issuer (with the assistance of its advisers) will have to make its own judgement. The directors of the issuer must closely and continuously monitor whether changes in the circumstances of the issuer are such that a notification obligation has arisen under Article 17 of the Market Abuse Regulation.

When to disclose inside information

However, information that is likely to be considered relevant to a reasonable investor's decision includes information that affects: The issuer and its advisers are in the best position to make an initial assessment as to whether a particular piece of information constitutes inside information.

Communication with third parties

Publication of information on internet site

Equivalent information

Delaying disclosure of inside information

Delaying disclosure

Legitimate interests and when delay will not mislead the public

The issuer should not be obligated to disclose impending events that could be jeopardized by premature disclosure. The issuer must first assess whether the issuer has a legitimate interest that would be affected by the disclosure of certain inside information.

Selective disclosure

Control of inside information

Denying access to inside information

Breach of confidentiality

Dealing with rumours

When there is press speculation or rumors about an issuer, the issuer should assess whether a notification obligation arises under Article 17(1) of the Market Abuse Regulation. Knowing that press speculation or market rumors are false may not be inside information.

Disclosure and control of Section 2.8 : Insider lists

  • Insider lists

Requirement to draw up insider lists

Providing insider lists to the FCA on request

Contents of insider lists

Maintenance of insider lists

Acknowledgement of legal and regulatory duties

Transactions by persons

Transactions by persons Section 3.1

Notification of transactions by persons discharging managerial responsibilities

Notification of transactions by issuers to a RIS

Periodic Financial Reporting

Reporting

Annual financial report

Application

Compliance with the Listing Rules

Publication of annual financial reports

Content of annual financial reports

Audited financial statements

Auditing of financial statements

Content of management report

Responsibility statements

Reporting format

Half-yearly financial reports

Publication of half-yearly financial reports

Content of half-yearly financial reports

Preparation and content of condensed set of financial statements

Additional items must be included if, as a result of their non-use, the half-yearly financial statements would give a misleading picture of the issuer's assets, liabilities, financial position and profit or loss. The accounting policies and presentation applied to the six-monthly figures must be consistent with those applied in the last published annual accounts, except when:

Content of interim management report

A Reports on payments to governments

Subject to the exemptions set out in ■DTR 4.4(Exemptions), this section applies to an issuer:. In this section, an “issuer active in the extraction or logging of primary forest industries” refers to an issuer that is:. An issuer is considered to be active in the extraction or logging of primary forest industries if any of its subsidiaries are:.

In this section, "subsidiary" has the meaning given in regulation 2 of the Reports on Payments to Governments Regulations 2014 (SI.

Preparation and publication of reports on payments to governments

The report on payments to governments must be made public no later than six months after the end of each financial year. The issuer must ensure that the report on payments to the states remains publicly available for at least ten years.

Content of reports on payments to governments

In this rule "relevant activities", "project" and "director" have the meanings given in regulation 2 of the Reports on Payments to Government Regulations 2014 (SI. The FCA considers a report on payments to governments prepared in accordance with the Reports on payments to government regulations 2014 (SI must comply with■DTR 4.3A.7AR and■4.3A.7BR.

Responsibility

Filing of reports on payments to governments

Periodic Financial Section 4.4 : Exemptions

  • Exemptions

Public sector issuers

Debt issuers

Issuers of convertible securities

Issuers of preference shares

Issuers of depository receipts

Third countries – Equivalence

Vote Holder and Issuer

  • Notification of the acquisition or disposal of major shareholdings

A person must inform the issuer of the percentage of his voting rights that he holds as a shareholder or holds or is deemed to hold through his direct or indirect holding of financial instruments falling within ■DTR 5.3.1R (1) (or ' a combination of such holdings). ) if the percentage of those voting rights:. 2) an applicable threshold in (1) is reached, exceeded or dropped as a result of events that change the breakdown of voting rights and on the basis of information provided by the issuer in accordance with.

Certain voting rights to be disregarded

Aggregation of holdings

Aggregation of holdings in the case of a group

Certain voting rights to be disregarded (except at 5% 10% and higher thresholds)

  • Acquisition or disposal of major proportions of voting rights
  • Notification of voting rights arising from the holding of certain financial
  • Aggregation of managed holdings
  • Acquisition or disposal by issuer of shares

Only long positions are taken into account for the calculation of voting rights. 6.The number of voting rights is calculated daily, taking into account the last closing price of the underlying share. For the purposes of paragraph (1) of DTR 5.4.3. Direct instruction means any instruction given by the parent undertaking, or another controlled undertaking of the parent undertaking, specifying how the voting rights are to be exercised by the management company or investment firm in special cases.

The percentage is calculated based on the total number of shares with voting rights.

Notification Rules

  • Disclosures by issuers
  • Notification of combined holdings
  • Procedures for the notification and disclosure of major holdings
  • Filing of information with competent authority
  • Use of electronic means for notifications and filing
  • Third country issuers
  • Continuing obligations and
    • Information requirements for issuers of shares and debt

A person giving a notice in accordance with■DTR 5.1.2 Rmust do so by referring to each of the following:. Where a power of attorney holder receives several powers of attorney, one notification may be made in respect of the. Information submitted to the FCA for the purposes of the chapter must be filed by electronic means.

An issuer whose registered office is in a third country will be treated as complying with the requirements of ■DTR 5.8.12 R (2) (issuer must publish notices of major shareholdings before the end of the third day after receipt), provided that the period within which. notification of the larger holdings must be made to the issuer and must be published by the issuer, is in total equal to or shorter than seven trading days.

Amendments to constitution

Equality of treatment

Exercise of rights by holders

Exercise of rights by proxy

Appointment of a financial agent

Electronic Communications

Information about changes in rights attaching to securities

Information about meetings, issue of new shares and payment of dividends share issuers

Information about meetings and payment of interest – debt security issuers

Third country exemption

Regional and local authority exemption

Exemption for issuers of convertible securities, preference shares and depository receipts

Filing information and use of language

Filing of information with the FCA

Language

English language

Dissemination of information

1A) An issuer or person disclosing regulated information is exempt from subsection (1) if:. a) the regulatory information in raw full text has been deposited with the FCA by uploading it to the national storage mechanism;. No publisher or individual is responsible for systemic errors or deficiencies in the media to which the regulated information has been communicated. [Note: Article 12(4) of the RVO implementation guideline]. Upon request, an issuer or other person must be able to communicate with the FCA, in relation to disclosure of regulated information:.

An issuer or person may not charge investors specific fees for providing regulated information.

Disclosure of information in a third country

Disclosure of Home State

Disclosure of Home State

Continuing obligations Annex 1 and access to information

6Classes and sub-classes of regulated information

Corporate governance

  • Audit committees

Audit committees and their functions

Corporate governance statements

An issuer to which this section applies must include a statement of corporate governance in its directors' report. The corporate governance statement must contain the information required by paragraph 13(2)(c), (d), (f), (h) and (i) of Schedule 7 for Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI Information on Share Capital) where the issuer is subject to the requirements of that paragraph. The corporate governance statement must contain a description of the composition and functioning of the issuer's administrative, management and supervisory bodies and their committees.

Under (1) or (2), the corporate governance statement must contain the information required by ■DTR 7.2.6R or refer to the directors' report where that information is available.

Related party transactions

Transaction

Definition of related party

Definition of related party transaction

Transactions to which this section does not apply

Material related party transactions

Requirements for material related party transactions

Aggregation of transactions in any 12-month period

Compliance with the disclosure requirements

Corporate governance Annex 1

7The related party tests

Primary Information Providers

Primary Information Section 8.1 : Application

Providers

Application

Primary Information providers and applicants

List of primary information providers

Approval as a primary information provider

Application for approval as a primary information provider

When considering an application for approval as a primary information provider, the FCA may make any inquiries and request any further information it considers appropriate, including consulting other regulators. Note: The decision-making procedures the FCA will follow when considering refusing an application for approval as a primary information provider are set out in DEPP.]. Approval as a primary information provider becomes effective when the person is informed in writing by the FCA.

The FCA will add the name of the person approved as primary as soon as possible.

Restrictions or limitations on approval

Criteria for approval as a primary information provider

The FCA will approve a person as a primary information provider only if it is satisfied that the person will be able to:.

Continuing obligations

Arrangements with media operators

Handling regulated information: timing and prioritisation

Handling regulated information: fees

Handling regulated information: operational hours and support

Handling regulated information: business continuity

Handling regulated information: security

Handling regulated information: amendments

Handling regulated information: record keeping

Receiving regulated information: validation of submissions

Disseminating regulated information: scope

Disseminating regulated information: format

Disseminating regulated information: use of headline information

Disseminating regulated information: dissemination to media operators

Disseminating regulated information: embargo of regulated information

Disseminating regulated information: provision to the FCA

Systems and controls

Relations with the FCA

Changes in ownership or company structure

General notifications

A provider of primary information must notify the FCA and its clients as soon as possible if its ability to disseminate or continuously receive is regulated. If the primary information provider is de-authorized, he must. immediately informs its customers, regulatory authorities and all media operators with whom it has an agreement to disseminate controlled information that it is no longer approved as a primary information provider.

Annual fee

Supervision of primary information providers

Annual report

Requirement to provide information

Situations where the FCA may impose limits or restrictions on the services that a primary information provider may provide include (but are not limited to) where it appears to the FCA that: Where this is the case, the procedure for giving a legal notice is set out in the DEPP .].

Discipline of primary information providers

Suspension of a primary information provider’s approval at the primary information provider’s request

Cancellation of a primary information provider’s approval at the primary information provider’s request

A primary information provider may withdraw its request at any time before the cancellation takes effect.

Primary information providers: advancing the FCA’s operational objectives

Primary Information Annex 1 Providers

8List of regulatory bodies

Primary Information Annex 2 Providers

8Headline codes and categories

Form FEE 8 (OPD) [Insert Name of Initial Position Disclosure by Client or Bidder] Client in Offer. OFB offer from [insert name of offeree] Statement detailing offer published by offeree OFF Offer to [insert name of offeree] Statement detailing an. Form DCC 8 (DD) – [Insert name of- Dealing disclosure by the party ordered or the offeror or person acting in the con-.

DTR TP 1

Disclosure and transparency rules

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EEA state where the issuer is incorporated; or. ii) to comply with the accounting standards of the non-EEA state that such issuer has chosen to follow. i) no later than 31 December 2006, the total number of voting rights in respect of each share class it issues and admitted to trading on a regulated market or a UK prescribed market, discriminating between the number of voting rights attached to all shares held by are held in-house by the issuer; ii) any subsequent change in that aggregate number of voting rights and in voting rights attached to treasury shares between the date the disclosure is made in (i) and 20 January 2007. 7 5.8.3 R Notwithstanding DTR 5.8.3 A person who becomes a percentage of January's voting rights, the issuer must notify the percentage of. 4.2) shall not apply to issuers of debt securities whose denomination per unit with a maturity of at least EUR 50,000 or, in the case of debt securities denominated in a currency other than Euro, the value of such securities up to which nomination per unit on the date of the (19) app issuance equal to at least EUR 50,000 plies already admitted to trading on a regulated market in the EU prior to December 31, 2010 .

For purposes of DTR 7.3.13R, only 2020 transactions or arrangements entered into on or after the start of the fiscal year beginning on or after June 10, 2019 must be aggregated.

Powers Exercised

G [deleted]

G [deleted]

Rules that can be waived

Audit Committees for certain issuers

Audit Committees for certain issuers [deleted]

Referências

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