Transparency Directive changes take effect soon
The FCA has published the final rule changes necessary to implement the amended EU Transparency Directive. These changes will take effect on 26 November 2015.
The changes impact financial reporting, notification of changes in major shareholdings and the sanctioning powers of competent authorities and include, in particular:
- a company’s annual financial report and the half-yearly report must be publicly available for at least ten years;
- the period for issuers to publish their half-yearly reports has been extended from two months to three months after the end of the half-year period; and
- the power of competent authorities to impose higher fines.
Some of the changes from the amended Directive are already in force in the UK, having been implemented early. These include the abolition of interim management statements last year and the requirement to disclose certain payments made by companies in the extractive and logging sectors which applies for financial years commencing on or after 1 January 2015 (see UK Corporate update 27 August 2014).
HM Treasury has also been responsible for the implementation of the amended Directive and published Regulations in October setting out the changes to be made to the Financial Services and Markets Act 2000 (see UK Corporate Update 15 October 2015).
A briefing on the implementation of the amended Directive will be published shortly.