The internal management of regulatory risk has moved up the Board agenda, if for no other reason that fines imposed on individual directors for regulatory breaches are not covered by D&O insurance.

The regulatory burden placed on listed companies is becoming increasingly complex and time-consuming, and the resulting pressures on directors and the Company Secretary responsible for compliance are considerable.

In the UK, the implementation of the Financial Services and Markets Act 2000 and the high profile policing of the Listing, Transparency and Disclosure Rules by the Financial Conduct Authority (FCA) has prompted many listed companies to review their internal regulatory policies and procedures.

Companies have been particularly motivated by the FCA’s ability to pursue suspected breaches of its Rules and to impose substantial fines on issuers and individuals.

We conduct system reviews and regulatory briefings for listed and AIM companies to ensure that their regulatory audit trails, policies, procedures and processes are sufficiently robust to meet the likely demands of the FCA.

Our review examines areas such as applying the Model Code, internal dealing procedures, handling inside information, disseminating information and communication with analysts.  We have devised a comprehensive risk scoring system, giving companies a clear picture of areas of particular strength and weakness, as well as providing a benchmark for comparison.

Where our recommendations include improvements to written material, we will help draft appropriate policies, procedures, letters and forms to ensure an easily maintained and effective regulatory management system.

Please contact us to discuss how we can help you