Corporate weekly highlights—26 October 2017

Corporate weekly highlights—26 October 2017

This week’s edition of Corporate highlights includes ESMA’s updated Q&A on prospectus issues, the FRC’s annual review of corporate reporting, newly collected data on EU derivatives markets and four new and updated precedents in our Private M&A (share purchase) topic area.

Equity Capital Markets

ESMA updated its Q&A on prospectus issues

The European Securities and Markets Authority (ESMA) has updated its Q&As on prospectus related issues. The changes do not relate to the substance of the Q&As and come as a result of the Prospectus Regulation (EU) 2017/1129 becoming applicable on 20 July 2017.

The update includes the deletion of one Q&A (Q&A 27) and updates to four others (Q&As 29,31,32 and 44).

See further news, LNB News 20/10/2017 90.

Corporate Governance

FRC issues feedback statement on the role of auditors and preliminary announcements

Auditors who are engaged to agree to the publication of preliminary results under the UK Listing Authority (UKLA) rules should, where so engaged, refer to the FRC guidance contained in Bulletin 2008/2.

In April 2017, the FRC issued a discussion paper which looked at options for bringing Bulletin 2008/2 up to date. Options included: converting the guidance to an engagement standard; consulting with the UKLA to require auditors to follow FRC guidance; and mandating that statutory financial statement audits should be complete before auditors agree to the release of preliminary announcements (See LNB News 27/04/2017 96).

The FRC’s feedback statement sets out the responses to the consultation as against ten options laid out in the discussion paper.

The majority of respondents stated their belief that the current regime for preliminary announcements is fit for purpose and does not require significant change. Consistent with feedback that the FRC has also received from its separate investor outreach exercise, many respondents commented that the role of auditors should be considered in the context of the primary role of directors in producing accurate and reliable financial information. Respondents did, however, agree that minor amendments to Bulletin 2008/2 (to

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