Corporate Briefing - October 2023

Financial promotions gateway is now live

The financial promotions gateway has become law. This could have a significant impact on corporate finance, fund distribution and other marketing activities that have previously relied on the approval of financial promotions. Once the gateway is introduced, unless the giving of approval falls within an exemption conferred by regulations, it will no longer be possible for an authorised person to approve financial promotions to be issued by unregulated third parties unless the approving firm has permission from the FCA to do so.

For more details, read our insight "Financial Promotions Gateway goes live - are you caught?"

Raising the stakes in activist shareholder claims

The High Court has ordered that ClientEarth pay Shell’s costs in connection with all aspects of ClientEarth’s unsuccessful application for permission to continue a derivative claim against Shell and its directors. This is a departure from the default position in derivative proceedings. Usually, the company will not be awarded any costs incurred in making submissions in opposition to, or attending any hearing of, a shareholder’s application at the permission stage. This judgment therefore raises the stakes for activist shareholders who are considering bringing a derivative claim.

For more details, read our insight "Raising the stakes in activist shareholder claims".