FSA to relax rules on corporate disclosure
Chief City watchdog, the Financial Services Authority, is set to relax the rules on what companies can disclose to their shareholders before announcements are made public.
The regulator said the move was designed to allow the stock market to run more smoothly. Ken Rushton, director of listings at the FSA, told the FT the rules needed to be fixed to allow standard practices, such as revealing chief executive candidates to shareholders.
The move is also designed to level the playing field between investors and analysts, in terms of the company information they have access to.
A consultation document is expected to be published in November.
But private sharholder group Proshare hit out at the proposals, saying they would disadvantage smaller investors.