On 28 August 2013, the Financial Conduct Authority (‘FCA’) published consultation paper CP 13/7 with proposed amendments to the Listing Rules to reflect:
- the new directors’ remuneration report regulations3; and
- the new strategic reporting regulations4.
The new strategic reporting regulations will apply to reports produced in relation to financial years ending on or after 30 September 2013 while the changes to the directors’ remuneration reporting regime will apply to the first directors’ remuneration report to be published during the company’s first financial year beginning on or after 1 October 2013.
Given that the new directors’ remuneration report regulations contain reporting requirements similar to those set out in chapter 9 of the Listing Rules, the FCA proposes to delete LR 9.8.8R, except for LR 9.8.8R (9) (details of any unexpired term of any directors’ service contract) which is applicable to premium listed overseas incorporated issuers and which will continue to apply.
The FRC also proposes to replace existing references to ‘summary financial statements’ with references to ‘a strategic report with supplementary information’ to reflect the revised term introduced by The Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.
The FRC has requested comments by 9 October 2013 and intends to implement the changes on 1 January 2014. The changes will apply to premium listed companies incorporated in the UK with financial years ending on or after that date. Those companies with a financial year-end falling before that date should continue to comply with the existing requirements of chapter 9 of the Listing Rules, as well as with the new directors’ remuneration report regulations when appropriate.
FCA CP 13/7 Consequential Changes to the Listing Rules resulting from the BIS Directors’ Remuneration Reporting Regulations and Narrative Reporting Regulations available at: