The corporate law landscape in August 2025 is marked by significant regulatory changes and updates that businesses and legal professionals must carefully track to stay ahead of evolving compliance requirements and governance standards. These developments span key areas such as corporate governance, transparency in financial markets, and stewardship responsibilities, offering a glimpse into the priorities of regulators in the coming years.
One of the most notable updates comes from Institutional Shareholder Services (ISS), which has launched its 2025 Global Benchmark Policy Survey. This survey, which is set to close on August 22, 2025, aims to gather crucial insights on a variety of pressing governance issues. Among the topics covered are dual-class share structures, non-executive director overboarding, time-based executive incentive awards, and the governance of artificial intelligence (AI) risks. These issues are particularly relevant as shareholder engagement strategies and corporate governance practices are coming under greater scrutiny. By soliciting shareholder perspectives on these matters, ISS intends to guide companies on best practices and future policy recommendations that could impact their governance frameworks and shareholder relationships.
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In addition to the ISS survey, the UK Financial Conduct Authority (FCA) is introducing a new regulatory requirement that will have wide-ranging implications for issuers and other entities submitting regulated information. Starting on November 3, 2025, the FCA will require more comprehensive legal entity identifier (LEI) reporting. This updated reporting framework is aimed at enhancing the functionality of the National Storage Mechanism, which will, in turn, make it easier to access issuer information and improve overall market transparency. This move is designed to streamline the reporting process, making the financial markets more transparent and efficient for investors and regulators alike. The requirement will affect a wide range of financial entities, from public companies to investment firms, and will be a key consideration for those involved in the submission of regulated financial information in the UK.
The FCA is also making strides to simplify the listing process for companies seeking to list their securities. It has published final rules for public offers and admissions to trading on a regulated market or a multilateral trading facility (MTF). These new rules, which aim to streamline the process, offer clearer guidance on the requirements and procedures involved in listing securities. Companies looking to go public or expand their trading activity will benefit from these simplified requirements, allowing them to navigate the often complex and lengthy process with greater ease and predictability. This move is likely to encourage more companies to consider listing on UK exchanges, contributing to the vibrancy of the financial markets.
Another key update in corporate governance comes from the ISS 2025 Global Benchmark Policy Survey, which highlights several critical governance issues. Among the issues identified are mandatory offer requirements for companies with dual-class share structures. This area of governance has been a point of contention in recent years, as some companies have adopted dual-class share structures to preserve control in the hands of founders or select groups of shareholders. However, such structures often come under scrutiny for potentially undermining the rights of ordinary shareholders. By seeking shareholder perspectives on these and other governance matters, ISS is looking to inform future policy recommendations that will influence how companies structure their shareholder relations and governance practices.
Lastly, the UK Stewardship Code 2025 has been opened for consultation, with comments due by August 31, 2025. The Financial Reporting Council has published the draft Code, which will come into effect on January 1, 2026. The UK Stewardship Code 2025 outlines the responsibilities of institutional investors, emphasizing their role in engaging with companies on environmental, social, and governance (ESG) issues. With ESG becoming an increasingly important aspect of corporate governance, the Code seeks to enhance transparency and accountability in how investors engage with companies on matters of social responsibility and sustainability. The consultation period offers a crucial opportunity for stakeholders to provide feedback, which could shape the final version of the Code and the expectations for institutional investors moving forward.
Together, these developments illustrate the dynamic nature of corporate law in 2025, where issues related to corporate governance, transparency, and compliance are taking center stage. As companies and legal professionals navigate these changes, staying informed and adaptable will be essential to ensuring compliance and maintaining strong governance practices. These regulatory shifts underscore the growing importance of corporate accountability, shareholder engagement, and responsible investment, all of which are poised to shape the future of business in the years ahead.
In conclusion, businesses must closely monitor these changes and consider how they may impact their operations, governance structures, and investor relations strategies. With new reporting requirements, governance policy shifts, and evolving expectations for institutional investors, companies that proactively adapt to these developments will be better positioned to thrive in a more regulated and transparent business environment. The corporate landscape of 2025 is one of change, and the businesses that stay ahead of these developments will be those best equipped to navigate the future.
