We consulted on changes to streamline our transparency rules for certain companies with securities admitted to UK regulated markets to prepare their annual financial report in a specific web browser format (XHTML), and to present the financial statements in it in the structured digital format.
Why we are changing
Structured digital reporting can improve transparency of market disclosures by applying ‘tags’ to the information. This makes it easier for market participants to extract, compare and analyse it. This supports efficient price formation and investors’ decision making.
In January 2023 we consulted on:
- Simplifying the content and arrangement of our existing requirements by revoking the Technical Standard where they were set out, and putting the key provisions directly in the Disclosure, Guidance and Transparency Rules (DTRs).
- Making a new rule in DTRs requiring issuers to tag their annual financial statements using a ‘generally accepted taxonomy’ for annual corporate reporting in UK regulated markets.
- Issuing guidance on ‘generally accepted taxonomies’ in a new Technical Note. We will be able to keep this Technical Note updated more quickly than has been possible in updating the permitted taxonomies in the Technical Standard.
Who this is for
- all companies who are required to prepare and publish an annual financial report under DTR 4.1 in the electronic reporting format.
- advisory firms and service providers who support companies in this field
- software vendors and other service providers who supply the products and technology to enable digital reporting
Industry feedback has asked for greater certainty on our requirements for structured digital reporting, including when we will accept more recent taxonomies.
Our changes address those concerns by moving the key provisions from the Technical Standard directly into our Handbook, deleting the Technical Standard (and the remaining, unnecessary content), and creating a simpler and quicker process for staying up to date with generally accepted taxonomies in a new Technical Note.