Woodsford responds to proposed lowering of standard by which the accuracy of forward-looking statements is measured
Woodsford Engage has submitted a written response to the Financial Conduct Authority’s (FCA) engagement paper on introducing a new category of “protected forward-looking statements” in the prospectus regime. This would effectively make it more difficult for shareholders to hold companies to account when certain types of forward-looking statements in prospectuses are inaccurate.
The thrust of Woodsford Engage’s submission is that issuers should not be allowed to negligently make inaccurate forward-looking statements in prospectuses. While companies should be encouraged to make commitments (in particular, ESG commitments) in prospectuses, this should not come at the expense of the truth, accuracy or reliability. In particular, it is essential that investors’ rights to hold companies to account are not diluted.
Woodsford Engage is already at the vanguard of investor protection in organising and funding collective engagement with issuers, including securities litigation where necessary. It also aspires to be a leading voice in promoting investor interests with global policy-makers.
If you have any questions or would like to contribute to our public policy efforts, please let us know.
You can read our response in detail here.
If you’d like to discuss the topic in more detail feel free to get in contact with David Haughan, an Investment Officer in our London office.