Overview

The Regulations to amend section 90A apply to information published on or after 1 October 2010.

By way of background, the UK's implementation of theTransparency Directive in 2007 included the creation of the statutory liability regime set out in section 90A of the FSMA. Section 90A provides that the issuer is liable to compensate an investor who acquires securities and suffers loss as a result of an untrue or misleading statement or omission in a periodic financial report required by the Transparency Directive or in a preliminary results statement. Soon after section 90A was put in place, the Government set in train a consultation, including a review by Professor Paul Davies, on whether the regime should be extended to other disclosures and to other markets. For more details on the Davies Review, see corporate e-bulletin 2007/12and for more details on the Treasury consultation, see corporate e-bulletin 2008/21.

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