Overview

Statutory liability is currently imposed on Main Market listed companies for fraudulent misstatements contained within results statements. From 1 October 2010, the existing regime is being extended to:

 apply to AIM, the PLUS-Quoted market and other markets situated in the UK;
 apply to all regulatory announcements made by a listed company;
 introduce a new offence of delaying publication of information dishonestly; and
 allow claims by investors who sell or continue to hold (as opposed to only those who buy) securities in reliance on a disclosure by the company.

These new rules will mean that listed companies generally will have to pay more attention to the accuracy of all announcements made to the market. In particular, statements contained in announcements will need to be verified and the decision-making process as to when to make, or to delay, an announcement to the market will need careful consideration.

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