Clarification of RNS reporting and checks and measures to prevent abuse

Keith Mallen (Ataliwyd y cyfrif) made this Rhyddid Gwybodaeth request to The Financial Services Authority

This request has been closed to new correspondence from the public body. Contact us if you think it ought be re-opened.

Roedd y cais yn llwyddiannus.

Keith Mallen (Ataliwyd y cyfrif)

Dear Sir or Madam,

According to

RNS Reach

"RNS Reach

RNS Reach is an investor communication service for the delivery of non-regulatory news such as marketing messages, corporate and product information. RNS Reach is based on the existing RNS service and has the same levels of efficiency, control and broad dissemination.

RNS Reach also enables unlisted and foreign-listed companies to deliver their news to a professional UK financial audience. RNS Reach announcements are tagged “RNS-R” in the “Source” column of the Market news service."

Given 'RNS Reach' announcements are tagged "RNS-R" I would assume that the following statement would refer to announcements that would be tagged as "RNS"

"Regulatory announcements

Company news is the lifeblood of the equity market – it animates securities and drives trading. RNS and other Regulatory Information Services play a key role in disseminating company news. All companies listed on the UK Listing Authority’s Official List and quoted on AIM must first release information that might affect the price of their shares through a Regulatory Information Service to ensure equal access – these disclosures are known as regulatory announcements. The scope of regulatory announcements includes periodic information, such as interim and final results, as well as occasional and other ad-hoc information such as director’s share dealings, mergers and acquisition information and operational updates."

As an example of possible abuse of the available reporting methods On 3 June 2009 the company 'Phorm' released an announcement under the tag "RNS" which, from my point of view and the above descriptions, has to be classified as an example of 'non-regulatory news such as marketing messages, corporate and product information'

And therefore should not have been released as an RNS because it is an example of 'non-regulatory news such as marketing messages, corporate and product information' and should have been released under "RNS-R"

You will understand that RNS announcements are generally and widely reported by various investment services provided over the internet. However this may not apply to, what should be classified as, RNS-R announcements which will not be so widely reported.

As a result companies may choose to abuse, as Phorm and I would assume other companies have done, the available reporting systems for the purposes of marketing visibility.

FOI request

Please provide details of the checks and measures you have in place to ensure that such abuse of the available reporting systems is prevented.

Please provide details of information provided to listed companies which explains use of the reporting systems available.

Please provide details of penalties that may be applied should a company choose to abuse such systems.

Yours faithfully,

Keith Mallen

Freedom of Information,

Our Ref: FOI1387

Dear Mr Mallen

Freedom of Information: Right to know request

Thank you for your request for information under the Freedom of
Information Act 2000 (the Act).

Your request was received on 3 August 2009 and will be processed in
accordance with the Act.

There may be a fee payable for the information you have requested. If
that is the case, you will be informed of the likely charges before we
proceed. The fee must be paid before the information is released.

If you have any queries please contact me.

Yours sincerely

K. Edwards

Information Access Team

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