FCA provides key commentary for issuers and market participants on coronavirus (Covid-19)

The FCA has published the 27th edition of the Primary Market Bulletin. This is a special edition in the light of the coronavirus pandemic.

Ongoing disclosure under MAR - in the short term, the FCA recognises that there may be slight delays in issuers meeting their disclosure obligations, but issuers are expected to continue to comply with their obligations under MAR and FCA rules and to make every effort to meet them in a timely fashion.

Market volatility and suspension of trading - the FCA aims to continue to maintain open and orderly markets despite current volatility. It will continue to consider requests from issuers to suspect trading in certain securities and will do so in accordance with its assessment of risks to the smooth operation of the market and the risk of harm to investors.

The importance of transaction notifications - persons discharging managerial responsibilities, and persons who are closely associated, are expected to continue to meet their notification requirements under MAR within the prescribed time frame.

Delays in corporate reporting - the FCA expects issuers to put in place contingency plans to minimise the effect of Covid-19 on logistical issues in relation to producing accounts for upcoming reporting periods. Appropriate advice should be taken if an issuer does not believe it can meet its continuing obligations, and issuers should contact the FCA to discuss. Issuers should engage with their auditors, who should contact the FRC as appropriate. 

Shareholder meetings - the FCA notes that, in the premium listing category, various FCA rules require issuers to engage with shareholders on certain matters. It supports the effective exercise of the rights of shareholders, but also recognises that virtual methods may have to be employed.

Corporate transactions and admissions - the FCA will continue reviewing documentation for corporate transactions in line with the established principles on its website. Where issuers seek to carry out urgent transactions, they should engage initially with their sponsor firm or adviser.

The FCA has also launched a new Covid-19 webpage. It will update this page over the coming weeks and expects to modify its guidance to firms as the situation unfolds.