Publication
What M&A trends will transform the 2024 insurance landscape?
It is widely accepted that 2023 was one of the worst years in recent memory for M&A activity.
Global | Publication | March 9, 2018
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London Stock Exchange plc (LSE) published AIM Notice 50 on March 8, 2018. It provides feedback on the consultation it issued in December 2017 pursuant to AIM Notice 49 and confirms the resulting rule changes to the AIM Rules for Companies (AIM Rules) and to the AIM Rules for Nominated Advisers (Nomad Rules).
The main changes to the AIM Rules relate to the following:
While the revised AIM Rules and Nomad Rules will come into effect on March 30, 2018, the implementation of the new corporate governance requirements in AIM Rule 26 will take effect from September 28, 2018 so that AIM companies and Nomads have adequate time to prepare for the change. All new applicants to AIM from March 30, 2018 will have to state which corporate governance code they intend to follow but otherwise will have until September 28, 2018 to fully comply with the new requirements in AIM Rule 26.
The LSE takes the opportunity in its Feedback Statement in relation to AIM Notice 49 to remind AIM companies and Nomads that good corporate governance is supported by a meaningful explanation of the company’s practices against the principles of the chosen code, rather than simply identifying areas of non-compliance.
(LSE, AIM Notice 50 and feedback statement, 08.03.18)
(LSE, Mark-up of AIM Rules for Companies, 08.03.18)
(LSE, Mark-up of AIM Rules for Nominated Advisers, 08.03.18)
On March 5, 2018 the Financial Reporting Council (FRC) announced the expectations of the Pre-Emption Group for pre-emption disapplication thresholds.
When the Prospectus Regulation came into force in July 2017, it introduced a new exemption from the obligation to publish a prospectus in relation to issues of securities representing up to twenty per cent of the company’s securities already admitted to trading.
In light of the new threshold, the Pre-Emption Group has confirmed that no change to the flexibility permitted by the 2015 Statement of Principles is expected as a consequence of the Prospectus Regulation. The Pre-Emption Group continues to support the overall limit of ten per cent in the Statement of Principles (the first five per cent being for general corporate purposes and, when applied for, the second five per cent for use only in connection with an acquisition or specified capital investment).
The Pre-Emption Group notes that, whilst decisions about specific placings are a matter for individual shareholders, the Statement of Principles reflects a generally agreed position supported by the Investment Association and the Pensions and Lifetime Savings Association and that companies should be mindful of the expectations included within it.
(Pre-Emption Group, Expectations for disapplication thresholds, 05.03.18)
On March 8, 2018 the European Commission published an Action Plan on how to harness the opportunities presented by technology-enabled innovation in financial services (FinTech).
The Action Plan envisages enabling the financial sector to make use of the rapid advances in new technologies, such as blockchain, artificial intelligence and cloud services. At the same time, it seeks to make markets safer and easier to access for new players.
The Action Plan is part of the European Commission's efforts to build a Capital Markets Union (CMU) and a true single market for consumer financial services. It is also part of its drive to create a Digital Single Market.
The Action Plan sets out 23 steps to enable innovative business models to scale up, support the uptake of new technologies, increase cybersecurity and the integrity of the financial system, including the following:
The Action Plan will also make it easier for crowdfunding platforms to offer their services EU-wide and improve access to this innovative form of finance for businesses in need of funding. Once adopted by the European Parliament and the Council, the proposed Regulation will allow platforms to apply for an EU label based on a single set of rules. This will enable them to offer their services across the EU. Investors on crowdfunding platforms will be protected by clear rules on information disclosures, rules on governance and risk management and a coherent approach to supervision.
The European Commission established a High-Level Expert Group on sustainable finance in 2016. The Group published its final report in January 2018 which set out eight priority actions it considered to be the necessary building blocks for any meaningful action regarding sustainable finance. Following that final report, the European Commission, on March 8, 2018, published an EU Action Plan on sustainable finance which includes proposals for strengthening sustainability disclosure and accounting rule-making and fostering sustainable corporate governance.
The Action Plan includes proposals to:
The European Commission will report on the implementation of the Action Plan in 2019.
(European Commission, Action Plan: Financing Sustainable Growth, 08.03.18)
Publication
It is widely accepted that 2023 was one of the worst years in recent memory for M&A activity.
Publication
The ongoing conflicts and further geopolitical tensions in Eastern Europe and the Middle East, coupled with upcoming elections in a number of key countries including the US and the UK, make 2024 challenging to predict what impact this will have on the insurance sector.
Publication
On 6 September 2022, the European Commission (EC) prohibited Illumina’s acquisition of Grail, bringing to an end the administrative stage of a legal saga that has attracted interest beyond competition law specialists.
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