The Financial Conduct Authority (FCA) has issued its latest Primary Market Bulletin. The Bulletin focuses on two areas:
- Article 10 of the UK Market Abuse Regulation and Environmental, Social and Governance Stewardship, and
- Sponsor Procedures in relation to Task Force on Climate-Related Financial Disclosures (TCFD) - aligned disclosure requirements for premium listed commercial companies following an assessment by the FCA of how sponsors have made changes to their own procedures to assess whether new applicants have procedures in place to enable them to comply with the relevant requirements.
In considering Article 10 the current Bulletin refers to Primary Market Bulletin 42 (Primary Market Bulletin 42 | FCA) following publication of this Bulletin the FCA received a number of queries relating to Article 10 of UK MAR (unlawful disclosure of inside information) and its application to specific scenarios. The current Bulletin seeks to address questions raised by stakeholders in relation to Article 10 and market conduct issues more generally in the context of ESG stewardship.
On the subject of sponsors procedures the Bulletin notes that sponsors have made changes to their internal policies and procedures to take account of the increased focus on climate-related matters. There is an expectation from the FCA that sponsors have sufficient skills, knowledge and expertise to interpret and apply relevant elements of the FCA Handbook in the context of a listed issuer's business and operations along with a reminder to sponsors of the importance of providing appropriate training for staff involved in sponsor services, including in relation to general developments in climate and sustainability related disclosure for listed companies and the technical requirements of the Listing Rules.
The bulletin can be accessed at Primary Market Bulletin 46 | FCA