FCA Changes Disclosure Policy

FCA Changes Disclosure Policy

The Financial Conduct Authority is planning to change its policy on the disclosure of investigations underway. It will introduce a more rigorous public interest test that raises the bar on what is revealed. Factors to be considered will. Include the impact on the share price, customers and broader financial stability. Companies will be given ten days’ notice of an announcement. It is anticipated that this change will lead to a doubling of the cases that might be disclosed.

France Riskier Than Greece?

In a significant move in the bond markets, yields on 10-year French bonds reached 3.02 per cent. This compares to Greece which commands a 3.01 per cent yield. In other words, unless France puts its budgetary house in order, the market believe France is higher credit risk.

Aviva Approaches Direct Line Shareholders

Insurer Aviva has decided to approach Direct Line’s shareholders directly after the latter refused to engage in takeover talks. Aviva has made a non-binding £3.3. billion bid which Direct Line’s board stated substantially undervalues the business. Aviva has until 5pm on Christmas Day to decide whether to formalize the bid or not.

Bermuda To Tighten Transparency Rules

The Bermudan Monetary Authority has announced that it will be tightening the rules on disclosure for life companies. There are concerns about the liquidity of investments and connections with affiliated parties. The troubles of 777 Re have caused reflection.