The OFR: US disclosure tips for UK corporates

Author: | Published: 1 Apr 2005

The recently finalized Companies Act 1985 (Operating and Financial Review and Directors Report etc) Regulations 2005 introduce a new set of requirements for forward-looking disclosure by UK quoted companies. The Regulations will soon require an estimated 1,290 companies to make mandatory forward-looking narrative disclosure as part of their corporate reporting.

Under the Regulations, all UK companies with an equity listing on the Official List of the UK Listing Authority, another European Economic Area (EEA) exchange, or the New York Stock Exchange or Nasdaq must produce a forward-looking annual operating and financial review (OFR) for financial years beginning on or after April 1 2005. Similar, but less stringent, disclosure requirements are being introduced under the EU Modernization Directive for an estimated 36,000 other large and medium-sized UK companies, including Alternative Investment Market and OFEX-traded companies and non-quoted issuers of high-yield bonds and Eurobonds.

The objectives and content requirements of...