The regulatory burden placed on listed companies is increasingly complex and time-consuming, and the resulting pressures on directors responsible for compliance are considerable.

In the UK, the implementation of the Financial Services and Markets Act 2000 and the revision to the Listing Rules in 2005 prompted many listed companies to review their internal regulatory policies and procedures.

Companies have been particularly motivated by the UKLA's ability to pursue suspected breaches of its Listing Rules and to impose fines on issuers and individuals. Fines imposed on individual directors are not covered by D&O insurance.

EquityCulture can help relieve the burden of identifying and managing regulatory risk.

We are currently conducting system reviews and regulatory briefings for a number of fully listed and AIM companies to ensure that their regulatory audit trails, policies and procedures are sufficiently robust to meet the likely demands of the FSA.

Our review examines areas such as internal dealing procedures, communication with analysts and use of the Internet for investor relations. We have devised a comprehensive scoring system, giving companies a clear picture of areas of particular strength and weakness, as well as providing a benchmark for comparison.

Where our recommendations include improvements to written material, we will draft appropriate policies, procedures, letters and forms to ensure an easily maintained and effective regulatory management system.