Emergency Response II: Press Reports And False Markets

Introduction

On 10 December 2014 a report¹ was published relating to the mishandling of the UK Financial Conduct Authority's (FCA) announcement of its thematic review into certain insurance business. The mishandling resulted in press reports exaggerating the extent of the FCA's review, thereby temporarily causing a disorderly market in insurance company shares.

Many of the failings which have been identified at the FCA can arise in any sector and in any organisation. Energy and commodities companies can therefore learn significant lessons from a closer look at the events which gave rise to the report and how the situation was managed after it had occurred.

This client alert focuses on the importance of careful preparation and the practice of emergency response plans, and the continuing management of emergency situations as they develop. These issues are looked at in the context of the difficulties posed by price sensitive information, interactions with the press