PracticeConsultingFSA to clamp down on listing breaches

FSA to clamp down on listing breaches

The Financial Services Authority will have the power to fine companies that break listing rules when the Financial Services and Markets Act is introduced in June.

With its proposed powers, the new City watchdog would be able to fine companies that do not fulfil their obligations as a publicly listed company. The severity of the fine will depend on the seriousness of the breach, and whether profits were accrued due to the infringement.

In May last year the FSA’s powers were extended to include the authority to manage the listings of all companies trading in the UK. This task was previously the responsibility of the London Stock Exchange. However, the LSE did not have the power to impose financial penalties on companies that broke listing rules.

An announcement of the exact date for the introduction of the Financial Services and Markets Act is expected in the next few weeks.

FSA director of listings Paul Geradine was reported in the Guardian as saying: ‘Financial penalties will be an important addition available to the UK listing authority.’ He added the fines would be an important way of emphasising the FSA’s serious view of listing rule breaches.

However, the proposal is unlikely to be well received by the City which has attacked the government in the past for tightening the regulatory regime, accusing it of introducing a system of fines for petty misdemeanours.

The Financial Services and Markets Act received Royal Assent in June 2000 and when it is implemented will establish the FSA as the single statutory body for financial business in the UK. New FSA duties will include taking over the responsibility for banking supervision from the Bank of England and the Treasury.

The watchdog will then regulate all financial businesses, unit trusts, investment exchanges and clearing houses

The FSA is also putting forward plans to lift the requirement for some companies to trade for three years before they seek a UK listing, and in a separate proposal they are hoping to revamp the listing rules covering warrants and retail investors.

Links

FSA ends ‘vendetta’ probe into firm

FSA proposes new risk-based strategy

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer