Extension of the Statutory Regime for Issuer Liability in the UK

July 25, 2008

The attached memorandum discusses the UK Government’s consultation on proposals to extend the statutory regime under which issuers may be liable to investors for misstatements to the market. HM Treasury has now announced its intention to extend the scope of this regime to capture issuers whose securities are admitted to trading on a wider variety of markets and to capture a broader range of publicly disseminated material, thereby allowing a larger range of investor to recover and, importantly, to permit recovery for losses resulting from “dishonest delays” in disclosure.

Please call any of your regular contacts at the firm or any of the lawyers listed at the end of the memorandum if you have questions concerning the implications of the proposed reforms.