This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FCA reminds issuers to file interim accounts to support distributions

  • FCA Image

06 Mar 2019

The Financial Conduct Authority (FCA) has reminded issuers that where a proposed distribution cannot be supported by the latest set of annual accounts they must file interim accounts with the Registrar of Companies to support any distributions before they are made.

The FCA highlights that failure to file interim accounts is the most common situation where dividends are paid out in a manner which infringes relevant company law.

The FCA highlights that in the last few years it has seen resolutions put to shareholders in general meetings seeking to rectify situations where dividends have been paid in such a manner.  These resolutions aim to put the company, its shareholders, directors and former directors in the position they would otherwise have been in had the interim accounts been filed.  When this approach is proposed, the FCA reminds premium listed issuers to also consider how to apply LR 11.

For more information see the FCA Primary Market Bulletin 20 on the FCA website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.