FCA & its relationship with the Act Flashcards
What three matters would the Act and the FCA overlap on?
Corporate Governance & Compliance
Financial Reporting
Enforcement & Penalties
How does the FCA and the Act work together to cover Corporate Governance and Compliance?
Companies listed on the LSE must comply with both.
The Act has provisions for corporate governance (shareholder rights, meeting procedures) & compliance provisions like financial reporting.
The FCA has a Corporate Governance code in their listing rules and rules for market conduct and financial services
How does the FCA and the Act work together to cover Financial Reporting?
The Act sets out requirements for annual financial statements, audits
The FCA may enforce additional financial reporting particularly for firms listed on stock exchanges to ensure market transparency and protect investors
How does the FCA and the Act cover Enforcement and Penalties?
The FCA has the power to investigate and enforce compliance with regulation relating to market abuse, misconduct by financial firms
The Act provides for penalties and remedies such as failure to comply with reporting requirements
