1) A QUARTERLY NEWSLETTER FOR CORPORATES JANUARY 2016/EUROPE Governance & Securities Law Focus In this newsletter, we provide a snapshot of the principal European, US and selected international governance and securities law developments of interest to European corporates. Financial regulation developments are available here. In this Issue (please click on any title to go directly to the corresponding discussion): EU DEVELOPMENTS ....................................................................................................................................................................... 2 Transparency Directive: Updated ESMA Q&As....................................................................................................................................................2 Financial Reporting: ESMA Public Statement on Improving the Quality of Disclosures in Financial Statements ................................................2 MiFID II: ESMA Note on MIFID II Implementation Delay ......................................................................................................................................2 Invest Europe Updated Handbook of Professional Standards .............................................................................................................................2 Prospectus Directive: Commission Proposal for a New Prospectus Regulation ..................................................................................................3 European Company Law: Codification of Directives ............................................................................................................................................3 GERMAN DEVELOPMENTS ............................................................................................................................................................ 4 Amendment of German Stock Corporation Act ....................................................................................................................................................4 UK DEVELOPMENTS....................................................................................................................................................................... 4 PSC Register: Draft Non-Statutory Guidance for Companies ..............................................................................................................................4 PSC Register: Government Response to Consultation ........................................................................................................................................5 PSC Register: Draft Statutory Guidance on the Meaning of Significant Influence or Control ..............................................................................5 Statutory Audit: Updated BIS Consultation on Implementation of EU Audit Reform ............................................................................................6 Corporate Governance: PLSA Corporate Governance Policy and Voting Guidelines 2015/2016 .......................................................................6 Corporate Governance: ISS UKI Proxy Voting Guidelines Update ......................................................................................................................7 Corporate Governance: FRC to Introduce Public Assessment of Reporting Against Stewardship Code ............................................................7 Corporate Governance: Investment Association Principles of Remuneration 2015 .............................................................................................8 Financial Reporting: FRC Report on Developments in Clear and Concise Narrative Reporting ..........................................................................8 Financial Reporting: FRC Letter to Audit Committee Chairs on Improving Corporate Reporting.........................................................................8 Financial Reporting: FRC Letter of Advice to Smaller Listed and AIM Companies on How to Improve Annual Reports .....................................9 Financial Reporting: FRC Review of Companies’ Tax Reporting .........................................................................................................................9 Financial Reporting: Financial Reporting Lab Publish Report on Disclosure of Dividends ..................................................................................9 Financial Reporting: FRC Discussion Paper on Succession Planning ...............................................................................................................10 Financial Reporting: FRC Corporate Reporting Review .....................................................................................................................................10 Financial Reporting: Modern Slavery Act 2015 ..................................................................................................................................................11 FCA: Revised Guidance on Advancing its Objectives ........................................................................................................................................11 FCA Quarterly Consultation No 11 .....................................................................................................................................................................12 LR and DTR: FCA Publishes Handbook Notice No 26 and Response to CP15/19 ...........................................................................................12 Prospectus Directive: FCA Note on Sending Final Terms to Host Competent Authorities.................................................................................13 UKLA Guidance Note: Primary Market Bulletin No 12 .......................................................................................................................................13 Disclosure and Transparency Rules: FCA Consultation on Delaying Disclosure of Inside Information .............................................................13 Directors’ Remuneration: GC100 and Investor Group’s 2015 Statement...........................................................................................................14 Admission and Disclosure Standards: Consultation on Amendments to Standards and High Growth Segment Rulebook ..............................14 Draft Financial Services and Markets Act 2000 (Market Abuse) Regulations 2016 ...........................................................................................15 Takeover Code: Statement of Public Censure of Advisers for Code Breaches .................................................................................................15 Takeover Code: Response Statement on Additional Presumptions to the Definitions of Acting in Concert ......................................................16 Takeover Code: Response Statement on Amendments to the Definition of Voting Rights ................................................................................16 Takeover Code: New Panel Practice Statements ..............................................................................................................................................17 Consultation on Changes to AIM Rules for Companies .....................................................................................................................................17 First UK Deferred Prosecution Agreement Approved by the English Courts .....................................................................................................17 US DEVELOPMENTS ..................................................................................................................................................................... 18 SEC and NYSE/Nasdaq Developments .............................................................................................................................................................18 Sanctions Developments ....................................................................................................................................................................................23 Noteworthy US Securities Law Litigation ............................................................................................................................................................23 Recent SEC/DOJ Enforcement Matters .............................................................................................................................................................25