In January 2008, the Financial Services Authority (the “FSA”) began a review of the UK listing regime. In what appears to be a diametric move from the increasing heavy handed approach of the FSA in other areas of financial regulation, under the new listing rules UK companies will now be allowed to take advantage of an easier route to achieving a listing on the main market of the London Stock Exchange.
Securities Regulation
“You win some, you lose some” — Recent Appeals and Decisions Involving the UK Financial Services Authority
Two high-profile decisions have been published in the last two weeks regarding actions brought by UK Financial Services Authority ("FSA") against members of the financial services industry. Both cases show signs of an increased willingness on the part of those subject to FSA enforcement action to challenge the enforcement wing of the FSA but with variable levels of success.
SEC’s Division of Corporation Finance Issues New Shareholder Proposal Guidance
On October 27, 2009, the Securities and Exchange Commission’s Division of Corporation Finance (the "Division") issued Staff Legal Bulletin No. 14E (the "Bulletin"), which provides guidance relating to the excludability of certain shareholder proposals under the ordinary business exclusion in Rule 14a-8(i)(7) of the Securities Exchange Act of 1934, as amended ("Rule 14a-8(i)(7)"). The Bulletin addresses two topics:
Financial Regulatory Reform: Consumer Financial Protection Agency Moves Forward
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets. We are providing updates on key regulatory and legislative issues, as well as information on legal and oversight issues that we believe could prove useful as firms and other entities navigate these challenging times. This update focuses on the House Financial Services Committee’s consideration and approval of H.R. 3126, the Consumer Financial Protection Agency Act of 2009.
The SEC’s Powers to Enforce the Production of Documents and Information, in the UK at Least, Hit a Stumbling Block
On 25 August 2009 (albeit the relevant decision has only recently been published), the Securities and Exchange Commission (the SEC) hit a stumbling block in its efforts to extend its jurisdiction to obtain documents and information from outside its territory, from the UK at least. Over recent years, international co-operation between regulators has increased, and has been reported to have increased, and a near assumption has arisen in the UK that, if the SEC asks for assistance from the UK’s financial services regulator, the Financial Services Authority (the FSA), that assistance will be provided by the FSA and complied with by the relevant UK entity, irrespective of the time and cost involved in doing so.
Considerations for Public Company Directors in the Current Environment
The current economic and regulatory landscape poses unprecedented challenges for public companies and their boards of directors. They are facing scrutiny from shareholders, Congress, regulators and the public, and new proposals to address the causes of the financial crisis have been emerging on almost a daily basis for over a year now.
Financial Regulatory Reform: Derivatives Legislation Moves Forward in House
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets. We are providing updates on key regulatory and legislative issues, as well as information on legal and oversight issues that we believe could prove useful as firms and other entities navigate these challenging times.
Companies Act 2006 Update — Changes to English Company Law Coming into Force on 1 October 2009
The recent upheaval in English company law is almost over. The provisions of the Companies Act 2006 (the "2006 Act") have been coming into force in stages. Not all the changes have set the pulses racing, though highlights have included the abolition of the prohibition of financial assistance for the acquisition of shares in private companies.
Financial Crisis Inquiry Commission to Begin Investigations Next Month
The Gibson, Dunn & Crutcher Financial Markets Crisis Group is closely tracking government responses to the turmoil that has catalyzed a dramatic and rapid reshaping of our capital and credit markets.
The Aspen Institute Statement: “Overcoming Short-termism”
The Aspen Institute recently released a statement calling for a more thoughtful approach to government policy and incentives, business management and investor decisions. The statement addresses the need for investors and business management to pursue long-term corporate growth and sets out voluntary steps that can be taken to overcome the focus on short-term goals, which has had such a detrimental effect on the economy. We are pleased to share this statement, which was drafted by a coalition of concerned individuals and advisory board members of the Aspen Institute Business & Society Program and its Corporate Values Strategy Group. Gibson Dunn partner John F. Olson is a member of the statement’s drafting committee. Overcoming Short-termism: A Call for a More Responsible Approach to Investment and Business Management (Press Release and Statement)