Corporate weekly highlights—6 July 2017

Corporate weekly highlights—6 July 2017
This week’s edition of Corporate highlights includes the City of London Law Society and Law Society Company Law Committees updated Market Abuse Regulation Q&A and the news that the Prospectus Regulation has been published in the Official Journal.

Equity capital markets

City of London Law Society updates Market Abuse Regulation Q&As

The City of London Law Society and Law Society Company Law Committees have published an update to their Market Abuse Regulation Q&A. The updated version of the Q&A includes a new Part C which deals with the disclosure requirements where an issuer is negotiating contractual arrangements involving a subscription for shares.

The updated Q&A considers the following questions where parties are negotiating contractual arrangements in relation to a transaction involving a subscription for shares: whether the issuer is able to selectively disclose inside information to the counterparties in connection with such arrangements; if so, whether the issuer is able to delay disclosure of the inside information to the market, notwithstanding its disclosure to the counterparties; and if so, whether there is a requirement for the inside information to be announced before the relevant contractual arrangements can be entered into with the counterparties.

While the facts must be considered on a case-by-case basis, the Committees state that: selective disclosure of inside information to the counterparties should be permitted; a delay in disclosure to the market should be permitted provided that immediate disclosure is likely to prejudice the issuer’s legitimate interests, delay is not likely to mislead the public and confidentiality can be maintained; and disclosure to the market should not usually be required before the relevant contractual arrangements can be entered into with the counterparties.

For details see news, LNB News 30/06/2017 122.

Prospectus Regulation published in the Official Journal

Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login