UK: issuer liability - extending the statutory regime

HM Treasury has published its response to last year's consultation on extending the statutory regime for issuer liability: see here (pdf). The Financial Services and Markets Act (2000) will be amended in order to provide for the liability of issuers to pay compensation to investors in respect of (a) a misleading statement or dishonest omission in certain published information relating to securities, or (b) a dishonest delay in publishing such information. This will be achieved by the Financial Services and Markets Act 2000 (Liability of Issuers) Regulations 2010, a draft of which has been published here (pdf). An explanatory memorandum is available here (pdf).