In its July consultation paper Disclosure of Liquidity Support (CP08/13), the Financial Services Authority (the "FSA") proposed certain amendments to the Disclosure and Transparency Rules (the "DTRs"). The proposals were to clarify that a company with securities admitted to trading on the Main Market of the London Stock Exchange may have a legitimate interest in delaying public disclosure of liquidity support received from the Bank of England (or another central bank).

Following feedback from the consultation, the FSA has amended the DTRs to include a new rule, DTR 2.5.5A with effect from 6 December 2008. This new rule states that:

"An issuer may have a legitimate interest to delay disclosing inside information concerning the provision of liquidity support by the Bank of England or by another central bank to it or to a member of the same group as the issuer."

The FSA is of the view that a issuer receiving liquidity support from a central bank may have a legitimate interest to delay the disclosure of such support on the grounds that immediate disclosure could further exacerbate the company's existing problems and threaten its solvency. Moreover, the FSA considers that the amendments are consistent with the exemptions from immediate disclosure provided for by the EU Market Abuse Directive. As such, the FSA has clarified that the receipt of liquidity support is one of the "non-exhaustive circumstances" justifying delay in disclosure.

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