Regulation Archive

May 20, 2022
ISSB recognizes ‘challenges’ for small and mid-cap sustainability disclosure
The IFRS Foundation’s International Sustainability Standards Board (ISSB) says it will pay ‘special attention’ to small and mid-cap companies when developing its global baseline of standards for sustainability disclosures. The ISSB says it recognizes the ‘additional challenges’ faced by such companies and others in global supply chains in applying sustainability disclosure requirements. Its working group is about to begin consultations with jurisdictions o...
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Mar 18, 2022
SEC will consider climate disclosure rules for US companies on March 21 – It’s already facing threats of lawsuits
Better information leads to better decisions – this is the idea behind a regulatory device known as ‘mandated disclosure’. Mandated disclosures are all around you, from calorie counts on fast food restaurant menus to conversations with doctors around informed consent. But the biggest experiment yet in mandated disclosure may be an expected SEC proposal to exten...
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Mar 03, 2022
SEC proposes shake-up for Rule 10b5-1 trading plans
On December 15, 2021 the SEC proposed extensive amendments to Rule 10b5-1 that would, among other things, impose a cooling-off period for directors and officers buying and selling shares and require personal certification when they do so. Officers and directors of public companies – that is, insiders – frequently use Rule 10b5-1 trading plans to buy or sell a predetermined numbe...
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Feb 22, 2022
UK think tank calls for regulation of ESG ratings
The UK’s International Regulatory Strategy Group (IRSG) is calling for the ESG ratings industry to be regulated, citing concerns around transparency, a lack of consistency in the data and lack of clarity for investors. ‘ESG and sustainability are becoming increasingly central to investment decisions around the world,’ says Kay Swinburne, IRSG council chair, in the new report titled: ...
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Feb 01, 2022
Brexit Britain looks to smooth ‘rough edges’ of Mifid II
Mifid II will have some of its ‘rough edges smoothed off’ in post-Brexit Britain, but there is no appetite to completely tear up the EU’s protection for investors in UK law, according to regulator the Financial Conduct Authority (FCA). At an IR Society webinar last week on how Mifid II might be overhauled post-Brexit, as part of the government’s efforts to maintain London’s competitiveness as a financial center, Stephen Hanks, a manager at the FCA, said th...
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Jan 05, 2022
Can markets predict Supreme Court rulings for corporate cases?
What happens when a company’s case goes to the Supreme Court? How does it influence stock and options prices? And do investors price their anticipation of the outcome into these markets? While cases surrounding public companies often do not make it to the Supreme Court, it is well understood that those that do must be important, such as Apple’s antitrust case (Apple vs Pepper), eBay vs MercExchange, Mobil Oil vs Federal Power Commission, Walmart vs Dukes and Mic...
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Nov 29, 2021
‘UK stock market may outperform US in coming decades,’ says Premier Miton’s equities head
The UK’s Wholesale Market Review and the EU’s consultation on Mifid II’s Regulatory Technical Standards are both under way following Brexit. What do IROs need to know about the upcoming changes? Generally, market liquidity has declined over the last 10 years, and there is a danger that the demerger of the UK/EU liquidity pool will make things worse, in a kind of Balkanization process. Generally, we anticipate that IR staff will start to repor...
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Nov 22, 2021
Consistent, sustainable corporate investments: Anticipating regulation and reducing reputational risks
The European Commission’s (EC) requirements for sustainability reporting already affect a significant portion of investments made by companies. Certain areas, however – such as strategic liquidity management, cover-funds from direct employer pension commitments and lump-sum support funds for corporate pension plans – have been omitted from regulation so far. This could change if the legislator wants to achieve transparency without contradiction and ambiguity. ...
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