2017年-FCA英国金融行为监管局_ukla_tn_9111_substitution_of_issuer_of_debt_securities_1_2页_146kb

Regulator Assessment Summary: UKLA/TN/911.1 - Substitution of Issuer of Debt Securities

Core Content

This document outlines the FCA's assessment of the UKLA's Technical Note (TN) 911.1, titled "Substitution of issuer of debt securities." The note provides clarification on the procedural mechanics of replacing an issuer of debt securities on the Official List with a different legal entity as the obligor, typically seen in corporate bond transactions where the issuer is substituted by another group company. The guidance is part of the FCA's broader effort to enhance clarity and understanding of its regulatory provisions among listed companies and their advisers.

Main Purpose and Objectives

• Purpose: To clarify the existing procedure for substituting an issuer of debt securities on the Official List.
• Objective: Improve understanding and application of the FCA's rules by listed companies and their advisers, ensuring compliance and reducing ambiguity in regulatory interpretations.

Scope and Affected Areas

• Scope: The guidance applies to the substitution of an issuer in debt securities transactions.
• Affected Areas: The entire UK, as it is a national-level regulatory activity.
• Business Type Affected: All debt issuers listed on the Official List.
• Estimated Number of Affected Businesses: 1,125 debt issuers.

Key Information

• Lead Regulator: Financial Conduct Authority (FCA)
• Date of Assessment: May 2017
• Commencement Date of Guidance: March 2017
• Origin of the Guidance: Domestic
• Cutting Red Tape Review: Not included in this assessment

Impact on Business

Costs

• Estimated Time per Issuer: 30 minutes to read, understand, and disseminate the guidance.
• Estimated Cost per Issuer: Based on an hourly rate of £48, the cost for one issuer is £24.
• Total Estimated Cost for All Affected Businesses: £27,000 (for 1,125 issuers).

Benefits

• Clarity: The guidance provides clarity on the substitution process, helping firms better understand how to apply the FCA's rules.
• Compliance: It supports better compliance by reducing ambiguity and ensuring consistent interpretation of regulatory provisions.
• Efficiency: While the guidance does not introduce a new procedure, it enhances the existing one, potentially improving operational efficiency for affected firms.

Additional Information for BIT Score Validation

• BIT Score: 0.0
• Net Present Value (NPV): -0.03
• Duration of Policy: 10 years
• Price Base Year: 2017
• Implementation Date: March 2017

The BIT score of 0.0 indicates that the guidance is expected to have no significant negative impact on the business environment, with the net cost to business being zero. The negative NPV suggests a slight cost to the business, but this is not considered significant in the context of the overall impact.