City & Corporate: PROs reject FSA move on embargoed information

City PROs this week dismissed Financial Services Authority moves to ban the widely used practice of embargoed company announcements.

The regulator said in this month's List publication that its new Disclosure Rules forbid giving 'information under embargo to journalists or others' where the embargo 'seeks to prevent them using the information until it has been released to a regulatory information service'.

But some PROs said they would continue where necessary to 'prime' journalists for announcements.

'We won't change anything about the way we operate,' said one senior financial PRO. 'There will always be times when you will need to give someone the heads-up, unless the announcement is especially sensitive.'

However, another PRO insisted caution was advised. 'You live within the law. If you had to get something out the next day that was already in the market and which it would find perfectly normal, you might need to alert someone. But there is rarely a case for doing this. You should not send out price-sensitive information under an embargo.'

The FSA's Disclosure Rules implemented the EU's Market Abuse Directive from 1 July.

Although some have seen the FSA's more explicit wording as a move towards a ban on embargoes, the regulator has claimed that it has not made any significant changes to the UK's existing disclosure code.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in