Featured Product

    FCA Delays Implementation of European Single Electronic Format in UK

    November 05, 2020

    FCA published the policy statement PS20/14 setting out the proposal to push back, by one year, the mandatory requirements for European Single Electronic Format (ESEF). The concerned ESEF requirements relate to filing and publication of machine-readable financial statements and mandatory tagging of basic financial information. These were originally scheduled for financial years starting on or after January 01, 2020, but will now apply to financial years starting on or after January 01, 2021. Issuers will still be able to publish and file their financial reports in ESEF voluntarily for financial years starting on or after January 01, 2020, from January 2021, if they choose to do so. The new rules will come into force on December 31, 2020, which is the implementation period completion day, as defined in the European Union (Withdrawal Agreement) Act 2020.

    PS20/14 summarizes the feedback received and sets out the FCA response to it. It also offers an update on measures to extend deadline for the publication, by listed companies, of financial statements. FCA decided to continue with its proposal to push back by one year the mandatory requirements to publish and file machine-readable financial statements and tagging of basic financial information. However, requirements for tagging of notes to the annual financial statements will now run on their original timetable. This means that the requirement for all issuers to publish and file their annual financial reports in XHTML web browser format, replacing the current PDF format, will be pushed back to financial years starting on or after January 01, 2021, for publication from January 01, 2022. To tag basic financial information, the requirement for issuers that prepare consolidated annual financial statements in accordance with IFRS will be pushed back to financial years starting on or after January 01, 2021, for publication from January 01, 2022. However, the requirement for issuers that prepare IFRS consolidated annual financial statements to tag notes to the financial statements will be unchanged, applying to financial years starting on or after January 01, 2022, for publication from January 01, 2023. 

    PS20/14 affects issuers with transferable securities admitted to trading on UK regulated markets, or issuers that are considering admission to trading on a UK regulated market. It is also of interest to:

    • Issuers with securities admitted to the FCA Official List or considering a listing
    • Firms advising issuers or advising persons investing in them
    • Firms or persons investing or dealing in UK-listed securities or securities admitted to trading on a UK regulated market 
    • Firms providing research and analysis on issuers, accountants, and other advisors, along with the service providers helping issuers with the preparation and publication of their annual financial statements

    The new rules will come into force at the end of the implementation period as defined in EU (Withdrawal Agreement) Act 2020 (that is, December 31, 2020). To allow issuers to submit annual reports based on the ESEF standard, FCA is also upgrading its National Storage Mechanism facility and its online archive of filings by companies that are subject to the Transparency Directive and Listing Rules. FCA anticipates releasing the upgrade in January 2021, ready for issuers that wish to file reports in ESEF on a voluntary basis. To meet ESEF requirements issuers will need to devote potentially significant management and operational time for the rest of this year and continuing into 2021. In this context, and in line with other recent actions to relieve burdens on issuers, changes to the ESEF implementation timetable will allow issuers to focus on their more immediate and significant priorities. The EU regulatory technical standards setting out the detailed requirements and implementation timetable are already in force and will be a part of the UK law under the EU Withdrawal Act. FCA can only change the regulatory standards when it has the power to do so at the end of the Implementation Period. FCA is, therefore, making these changes with effect from January 01, 2021, following the end of the implementation period.

     

    Related Links

    Keywords: Europe, UK, Banking, Securities, ESEF, Reporting, IFRS, COVID-19, PS20/14, FCA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    HKMA Announces Launch of Data Repository on Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    NGFS Report on Integration of G-Cubed Model into NGFS Scenarios

    The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8301