According to the chairman of the Financial Serivces Authorities, the prospectus directive would have a disastrous impact on the UK markets and warned: ‘the concept of listing as such is likely to disappear.’
The directive is currently under debate in the European Union’s Council and seeks to harmonise listing rules across EU countries to ensure the member states are not in competition.
But according to Davies, the regime will mean UK aspects of the listing rules will cease to exist as the directive is a ‘maximum harmonisation directive,’ which means rules approved in one member state will be valid in all others.
He said: ‘The major [UK rules] include the model code, shareholder notification, votes about major transactions, and compliance to governance codes. The prospectus directive means if it is passed in its present form, these aspects of the rules will fall away.’
‘In the aftermath of the Enron affair it is remarkable to think that we may soon lose the basis on which many corporate governance and disclosure provisions rest.’
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements