Corporate weekly highlights—19 October 2017

Corporate weekly highlights—19 October 2017

This week’s edition of Corporate highlights includes the issue of AIM notice 47 by the LSE, the FCA handing down a £27m fine to Rio Tinto plc for breaching Disclosure and Transparency Rules, potential changes to the Enterprise Act 2002 and findings of the Parker Review Committee on Board diversity.

Equity Capital Markets

LSE issues notice on legal entity identifier requirement for AIM companies

The London Stock Exchange (LSE) has issued AIM Notice 47 which requires all AIM companies with securities admitted to trading on AIM to have a legal entity identifier (LEI) code. This is to ensure compliance with the obligations under the Markets in Financial Instrument Directive (MiFID II) and Market Abuse Regulation (MAR), which require market operators, such as the LSE, to collate LEI codes for each issuer with securities admitted to trading.

The LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. An existing AIM company is required to register for an LEI by 30 November 2017. The AIM application form for the admission of new securities to trading to AIM has been amended to require an LEI.

See news story, LNB News 13/10/2017 69.

Rio Tinto fined £27m by the FCA and facing SEC fraud charges for impairment loss failings

The Financial Conduct Authority (FCA) has fined Rio Tinto plc £27.4m for breaching Disclosure and Transparency Rules by failing to carry out an impairment test and to recognise an impairment loss on the value of mining assets it had acquired in its 2012 interim results. In the US, the company and two former executives face Securities and Exchange Commission (SEC) fraud charges. Both the US and UK actions relate to the Mozambique investment made by the mining firm in 2011. The FCA found that had Rio Tinto complied with its obligation to carry out the test, a material impairment would have been required to have been disclosed at the time

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