2018: What has happened so far and what can we expect?

What has happened so far?

Brexit update: As set out in our previous updates, Article 50 has been triggered and the UK is currently in the process of solidifying its position with the aim of moving forward with its negotiations with the EU. More on Brexit developments, including the outcome of the Chequers Summit and Theresa May's recent speech, are set out below in the article "The Latest on Brexit". 

April – Gender pay gap reporting: In April 2017 gender pay gap reporting requirements were introduced, with the first reports produced on 4 April 2018. Pursuant to the requirements, private and public sector companies with 250 or more employees are required to annually publish salary details (including bonuses) of both the men and women employed by that company and gender employment information. 

May – GDPR came into effect: On 25 May 2018 the General Data Protection Regulation (the GDPR) came into force in the UK (and in the EU generally). Despite Brexit, the GDPR is still relevant for UK based businesses as:

• the GDPR applies in the UK until the expiry of any Brexit transition period 
• the UK may choose to retain material parts of the GDPR following the expiry of any such transition period
• the GDPR will apply to companies outside the EU if such company offers goods or services to and/or monitors individuals in the EU. 

Compliance with the GDPR is of crucial importance given the potential for significant fines (up to EUR 20 million or 4 % of the global turnover of the company) in the event of non-compliance. The UK Data Protection Act 2018 (which received Royal Assent on 23 May 2018) works together with the GDPR and includes certain UK specific provisions.

For a more detailed analysis of the impact of GDPR (in Danish) from a general perspective please read: 
Den nye databeskyttelseslov er nu vedtaget 

Ny æra: Nu finder den elskede databeskyttelsesforordning endelig anvendelse 

What can we expect from the rest of 2018?

July – IPO reform process: The Financial Conduct Authority has issued new rules on the UK IPO process as a result of various discussions held and consultation papers issued during 2016 and 2017. The new rules will come into force on 1 July 2018 and are set to significantly change the timeline of milestone events in a London based IPO. For instance, an approved prospectus or registration document must now be published before any related research is released, and firms must give equal treatment to both connected and unconnected analysts (i.e. connected/unconnected with the underwriting syndicate) so research can be produced by both to the same timetable. 

Corporate Governance Code: As outlined in our September 2017 English law update, in February 2017 the Financial Reporting Council announced plans to reform the Corporate Governance Code (CGC) – which applies to public companies – and the revised CGC has been released for consultation. The new CGC is designed to be shorter and more streamlined, with stakeholder engagement a key focus. The CGC also focuses on director integrity, board composition and diversity, remuneration and accountability. The new CGC is expected to apply from 1 January 2019.