DBT: Guidance to reporting on payment data in directors' reports

On 30 December 2025, the Department for Business and Trade (DBT) published guidance for large companies that are now required by The Companies (Directors’ Report) (Payment Reporting) Regulations 2025  to report in their directors’ reports some of the information on their payment practices, policies and performance that they are required to report under the Reporting on Payment Practices and Performance Regulations 2017.

Further information on the 2025 Regulations is here and at the time of their publication, the Government stated that it was planning to publish updated guidance for large businesses in scope of the duty on how to comply.

The guidance includes information on the following:

• Which companies need to include the relevant information in their directors’ reports – this covers the size criteria and position of parent companies.
• The payment data that needs to be reported, with example scenarios explaining what would need to be reported in those examples.
•  How statistics should be reported, with examples where supply chain finance is used and reporting statistics where there is no invoice.

(DBT, Guidance to reporting on data in directors’ reports, 30.12.2025)

DBT: Updated draft statutory guidance on meaning of “significant influence or control” over companies and LLPs for purposes of PSC regime

On 5 January 2026, the Department for Business and Trade (DBT) published updated draft statutory guidance for both companies and limited liability partnerships (LLPs) on the meaning of “significant influence or control” in the context of the register of people with significant control (PSCs) of such entities.

This guidance is published under paragraph 24(5) of Schedule 1A to the Companies Act 2006 (CA 2006) and it has been laid before both Houses of Parliament. If neither House of Parliament resolves not to approve the draft guidance, after 40 days the Secretary of State must issue and publish the guidance in the form of the drafts.

The updated draft guidance for both companies and LLPs takes account of the fact that the CA 2006 no longer requires them to maintain their own PSC register as PSC information must be reported to Companies House. It also makes a few minor changes to the layout and language used in the current versions of the statutory guidance but there are no changes of substance to that current guidance.  

(DBT, Draft statutory guidance on the Meaning of “Significant Influence or Control” over Companies in the Context of the Register of People with Significant Control, 05.01.2026)

(DBT, Draft Statutory Guidance on the Meaning of “Significant Influence or Control” over Limited Liability Partnerships in the Context of the Register of People with Significant Control, 05.01.2026)

DBT: Update on UK government process to finalise UK Sustainability Reporting Standards

On 5 January 2026, the Department for Business and Trade (DBT) published a letter it has sent to the Financial Conduct Authority (FCA) which provides an update on the development of UK Sustainability Reporting Standards (UK SRS).

The letter has been sent as the FCA stated in its December 2025 Regulatory Initiatives Grid that it planned to consult on adopting UK SRS for listed companies in January 2026.

In the letter, DBT explains that, following consultation on the exposure drafts of UK SRS S1 and UK SRS S2 (published on 25 June 2025), the majority of respondents agreed with the content of the drafts but the approach to their implementation will be changed. Specific time-references about when the reliefs would apply in the standards will be removed and instead DBT will specify that timing about their application and their availability will be set out in government regulations (under the Companies Act 2006) or FCA rules (where relevant) or by any other relevant authority. DBT will also clarify how the statement of compliance is applied to reporters that make use of the reliefs.

In terms of timing, DBT notes that the International Sustainability Standards Board (ISSB) has finalised its amendments to IFRS S2. DBT will review these amendments with a view to incorporating them into the final version of UK SRS S2, which DBT anticipates publishing early in 2026.

(DBT, Update on UK government process to finalise UK Sustainability Reporting Standards, 05.01.2026)

Investor & Issuer Forum: Compass – Guide to drive alignment across the UK listed equity investment chain

On 16 December 2025, the Investor & Issuer Forum, launched by the Investor Forum in September 2025, published its Investor & Issuer Compass, a practical guide to effective engagement in UK listed equites, focused on long-term value creation and supporting better outcomes for companies, investors and the UK market.

The Compass is intended as a practical guide which sets out a concise set of market-agreed conditions for alignment intended to make interactions more predictable, transparent and constructive. The aim is that it should be used to:

• Anchor engagement discussions between boards, investors, and asset owners. 
• Guide internal teams’ approach and reporting priorities.
• Create a shared frame for cross-industry dialogue.
• Support education and capability-building across boards, IR teams and stewardship professionals.
• Identify areas of friction where expectations diverge and coordinated action is needed.

Rather than introducing a new framework, the Compass reinforces and connects the market principles already embedded in the FRC’s UK Corporate Governance Code for issuers and the UK Stewardship Code for investors, and other industry standards, to improve alignment, build trust and make interactions more effective.

It sets out five enabling conditions as follows:

1. Expectations are proportionate and practical – clear and achievable across mandates, investment approaches and corporate targets. 
2. Dialogue is constructive- engagement as the starting point, with thoughtful and transparent escalation, wherever feasible, recognising practical limitations. 
3. Boards are empowered and accountable – in their long-term decision-making, supported by informed stewardship. 
4. Reporting is clear, focused and decision-useful - reducing duplication and enabling meaningful conversations and informed oversight. 
5. The ecosystem is aligned and responsible - contributions are transparent, pragmatic and aligned with the unifying objective of shared value creation.

(Investor & Issuer Forum, Compass, 16.12.2025)