FSA publishes new 'List!' and Market Watch newsletters

1) Update on the Listing Rules Review:

The FSA has received 74 detailed responses to its first consultation paper (or "CP"), CP 203, published last October. The FSA intends to publish a second CP on the Listing Rules Review in the Autumn of this year and it will contain a feedback statement on the CP 203 consultation as well as new proposed rules and guidance implementing the EU Prospectus Directive (which is to be implemented in EU Member States by 1 July 2005) and updating the current Listing Rules. The current edition of List! outlines the key propositions in relation to equity and debt securities that FSA is likely to put forward in its proposed Autumn CP on the Listing Rules Review.

The FSA also reminds market participants of its joint consultation paper with the Treasury on implementing the EU Market Abuse Directive ("MAD"). The implementation of MAD will result in a number of changes made to the Listing Rules (e.g. disclosure of inside information, insider lists and directors dealings rules). The consultation period for this CP will end on 18 September 2004 and the FSA urges market participants to respond.

FSA has warned that a further consultation on the Listing Rules Review will be needed to implement the EU Transparency Directive by the end of 2006.

2) Update on the EU Transparency Directive:

The EU Transparency Directive was adopted in principle on 13 April 2004 and is likely to be published in the Official Journal of the European Union later this year with implementation likely at the end of 2006. The EU Transparency Directive imposes continuing obligation requirements on issuers who have their securities admitted to trading on a regulated market (e.g. disclosure requirements in relation to financial and other non-price-sensitive information). The EU Transparency Directive is a minimum harmonisation directive and thus the competent authority of the issuer's home Member State will be able to impose super-equivalent provisions in certain circumstances.

CESR (the Committee of European Securities Regulators) received a formal mandate to provide technical advice on possible implementing measures concerning the EU Transparency Directive in June 2004 and interested parties had until 29 July 2004 to submit their comments to CESR.

3) Update on Conflicts of interest:

The FSA briefly commented on the FSA's stance on issuers' interaction with analysts and the fact that intermediaries face significant pressure from issuers to provide positive research coverage.

Watch out for the next edition of List! which is due out in September and will cover the Sponsor Supervision regime, assessing Investment Managers' eligibility and the FSA's approach to hostile takeovers.

For the full text of "List!" please click on the link below:

http://www.fsa.gov.uk/pubs/ukla/list_aug04.pdf

The FSA has also published its 10th Edition of Market Watch Newsletter:

It provides a brief summary of the three market related cases (one on programme trading and two market abuse cases concerning the misuse of information) that the FSA has dealt with since the 9th Edition of Market Watch.

Market Watch also comments on issues relating to programme trading, credit portfolio trading and the use of non-public information, changes to the Non-Investment Products Code in respect of undisclosed principal trading in the foreign exchange market (and a reminder that the grace period to implement necessary changes ran out on 31 May 2004) and inter-professional conduct in relation to the settlement of differences.

Market Watch also provides a brief update on the status of implementing measures relating to the MAD and the joint FSA/Treasury consultation on MAD's implementation into UK law.

For the full text of "Market Watch" please click on the link below:

http://www.fsa.gov.uk/pubs/other/mw_newsletter10.pdf

Should you require further details or advice please contact Jason Harding on +44(0) 207 367 3138 or at jason.harding@cms-cmck.com or Stephen Hewett on +44(0) 207 367 2970 or at stephen.hewett@cms-cmck.com or Edina Cavalli on +44(0) 207 367 3126 or at edina.cavalli@cms-cmck.com .