IR Monitor – 30 March 2020

This week, we include the joint statement by the FCA, FRC and PRA which sets out actions to ensure the continued functioning of the UK’s capital markets amidst the COVID-19 crisis. We also look at the FCA’s decision earlier in the week to dismiss a ban on short selling, contrary to the moves of other European countries. A similar sentiment was echoed by the CEO of the Investment Association, Chris Cummings, who called on the Bank of England and FCA to keep markets open. Staying with COVID-19 reaction, we cover the potential relaxation of shareholder protection principles to allow companies to raise cash quicker. Next, we look at the large number of shares sold by top executives which, despite the tendency for selling at this time of year, are considerably higher than in previous years. Virtual AGMs have become a talking point as they become the norm during the COVID-19 crisis. Consequently, we assess ShareAction’s advice to the government that these should not become a permanent fixture. Finally, we look at the different approaches companies are taking toward their dividend policies.