The FCA has published Consultation Paper 14/17: Early implementation of the Transparency Directive’s requirements for reports on payments to governments (CP14/17).
The Transparency Directive (the TD) was amended by the Transparency Directive Amending Directive (the TDAD) to introduce, among other changes, new country by country reporting requirements for issuers who are active in the extractive or logging of primary forest industries. The TDAD came into force on 26 November 2013 and Member States are required to implement the TDAD within 24 months of that date.
HM Treasury has asked the FCA to align the implementation of the country by country reporting requirements in the TDAD with the implementation by the Department for Business, Innovation & Skills of the country by country reporting requirements set out in chapter 10 of the Accounting Directive 2013/34/EU which takes effect in respect of financial years commencing on or after 1 January 2015.
In CP14/17 the FCA is therefore consulting on the early implementation of the TDAD requirement for issuers who are active in the extractive or logging of primary forest industries to prepare a report annually on payments made to governments in the countries in which they operate.
The FCA proposes to:
- introduce new rules and guidance in chapter 4 of the Disclosure Rules and Transparency Rules (DTRs) setting out the requirements in a new DTR 4.3A;
- amend DTR4.4.8R and DTR6.3.5R(3) as the introduction of the new country by country reporting requirements have a consequential effect on them. The FCA proposes to amend these rules to refer to such reports; and
- make consequential amendments to DTR8 Annex 2, DTR TP 1 (1) and Prospectus Rule 2.4.2G to make reference to reports on payments to governments and DTR4.3A.
The deadline for comments on CP14/17 is 7 October 2014