The Pre-Emption Group has released a monitoring report which looks at the implementation of the Statement of Principles and the template resolutions regarding disapplication published by the Group in May 2016. The Statement of Principles provides a framework for early and effective dialogue, and the monitoring report suggests that the principles generally have been followed. However, the report also has highlighted examples of poor consultation and disclosure.
In order to assist companies, the Group has published an Appendix of Best Practice in Engagement and Disclosure. In summary, the Appendix encourages specific and direct consultation on the issue of whether pre-emption authority is to be utilised and reiterates that any engagement should follow both the spirit and letter of the Statement of Principles.
In light of the implementation of the Prospectus Regulation, the
Group has stated that the use of the Statement of Principles will
be monitored on an ongoing basis.
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