TOGETHER WITH...

In today’s email:

• The EU tanks Amazon’s robot vacuum cleaner deal

• How to get global commercial awareness

• Lactose intolerance discrimination

• The best books of last year

• An illegal AI comedy show

• Wordle, but for riddles

… and more!

EDITOR’S RAMBLE 🗣

When I got rejected at application stage for law firms (which happened a lot) I found it frustrating that I couldn’t get any feedback.

I mean, how was I supposed to know what I did wrong!?

I didn’t have a mentor, so I didn’t really know what mistakes to look for.

If you’re in the same position, I’ve made a video on the six most common mistakes in a law firm application firm.

If you’ve been rejected at application stage (+ don’t know why), go through this and compare your application to this video 👇️ 

- Idin

FEATURED REPORT 📰

📝 The UK’s changing its listing rules — here’s why that matters.

What's going on here?

In an attempt to make the UK a more attractive place to take your company public, the Financial Conduct Authority (FCA) has proposed new rules to make it easier and more attractive for companies to list their stocks in the UK.

What does this mean?

In recent years, many companies have chosen not to take their companies public (a process called ‘listing’ or referred to as an IPO) in the UK — they see it as a worse option than US.

The biggest example of this came last year — the British chip company ARM chose to list in New York instead of London.

The company said that listing in the US gives them:

• access to a deeper pool of investors,

• higher valuations and liquidity, and

• more favourable market conditions.

This was a bad look for the UK — so the FCA’s changing things to make London more appealing.

What’s going to change exactly?

The FCA is trying to make the UK stock market more attractive and competitive by simplifying the process for companies to list their shares.

Here are a few things it’s changing:

• 🔑 Simplifying the listing rules: The FCA is proposing a single category for listings. Currently, there are two categories for companies to list their shares on the London Stock Exchange’s Main Market (the premium and standard listing segments) — each with its own rules. So the new proposals make things simpler.

• 💡 Disclosure-based regime: In the current system, there are strict rules about what information companies must share to be remain listed. The proposed disclosure-based changes shift the focus towards ensuring that companies provide all relevant and necessary information to investors. This means that instead of complying with a rigid set of rules, companies just need to make sure they’re transparent and open enough so investors can make informed decisions about investing in them.

• 🔗 Changes in transaction rules: For transactions involving parties with a close relationship to the company (like major shareholders or executives), there won't be mandatory votes needed like there is now. But, there will be continued oversight by sponsors (sponsors are typically financial advisory firms or investment banks that guide a company through the listing process and ensure they stay compliant with the market’s rules).

• 🌍 Improving bond and derivative markets: The FCA is working on a new system (called a ‘consolidated tape’ system) for the bond market. This would provide investors with faster, cheaper access to trade and sales data and make the pricing of bonds and derivatives more transparent. By improving access to data, the UK bond market becomes more transparent and efficient, making it more attractive to international investors.

When are the changes being made?

The FCA is seeking feedback on these proposals right now.

But it plans to adopt and implement them in the second half of this year.

Why should law firms care?

When companies list in the UK, it’s a huge source of business for the capital markets teams at corporate law firms.

And right now, there's a downturn in this sort of work — recruiters are even saying there are many lawyers in this sector looking for jobs.

The downturn in listing activity isn't unique to the UK, as Christopher Roe, a partner at Clifford Chance, points out: “It is no secret that IPO activity has been muted lately. But it’s worth noting reflecting that this has also been the case globally, with the exception of the Middle East… It has not been a London only issue.”

But the UK’s rules don’t make it easy for firms to list here. Mark Austin, a partner from Latham & Watkins thinks things should be simpler: “Our listing regime had way too many friction points. This is about going into a level playing field. And I do think these are the right reforms, which will have the impact that is needed to reduce these friction points."

The changes are expected to increase activity in London’s capital markets, which is good news — more listings would lead to more business for law firms.

So, it’s no surprise that lawyers are really supportive of the changes. Jonathan Parry, a partner from White & Case, says “the FCA has come a long way in producing a rule book which will be competitive, and it means the rulebook will no longer be the excuse not to list in London”.

TOGETHER WITH INTERNATIONAL INTRIGUE* 🤝

Want to stay updated on global news? Well, here’s how.

How can you keep up with the stuff happening all over the world… all the time?

Well, International Intrigue can help you stay on top of the world from inside your inbox.

The 5-minute newsletter gives apolitical, jargon-free news and analysis from around the world.

Interested?

* This is sponsored content

A BIT OF FUN 😄

this is my new interview strategy...

IN OTHER NEWS 🗞

• 🔌 Amazon and iRobot have abandoned their $1.7bn (£1.34bn) acquisition deal because of regulatory concerns from the EU. This decision has led to significant layoffs at iRobot as well as a management shake-up. The proposed deal has now failed because it raised fears of reduced market competition. This has pushed iRobot into cost-cutting mode and resulted in a 16% fall in the company's share price.

• 💶 The European Central Bank (ECB) held interest rates steady, cautious about rising rates of inflation. Their aim is to maintain enough pressure to reach the 2% inflation target. Experts think these rate freezes will last until April. The ECB's position matches the US Federal Reserve, which also shifted from a long-term high rate to anticipated cuts.

• ⚖️ The Spanish fashion brand Mango was successfully defended by White & Case in a metaverse intellectual property lawsuit brought against it in Barcelona. Mango had allegedly used the work of famous Spanish artists to make new digital NFTs for its metaverse store (as part of its flagship store opening in New York). This case was the first time a Spanish court had to decide how to balance the rights of the original artists against the rights to change and make new art, especially in the metaverse. The court used the US idea of "fair use" to make its decision. Mango was awarded legal costs, marking a significant precedent in IP law.

• ☕ American coffee and doughnut company Dunkin' is being sued for $5m(£3.95m) over charges for non-dairy milk. The allegation is that it’s discriminative against lactose intolerant and milk-allergic customers. The class action suit, representing customers affected since 2018, argues this practice violates the Americans with Disabilities Act, drawing parallels to Dunkin' not charging more for other health-related modifications. The controversy is similar to the issues faced by Starbucks over its "non-dairy milk tax”.

• 🎤 The estate of comedian George Carlin is suing the media company Dudesy over a fake AI-generated comedy special titled "George Carlin: I’m Glad I’m Dead." The lawsuit alleges copyright and publicity right violations, demanding the immediate removal of the special, which uses a synthesised version of Carlin to comment on current events. The case highlights the growing legal challenges in the use of AI to recreate celebrity personas.

AROUND THE WEB 🌐

• 📚️ Cool: Need a book recommendation? Someone asked 1,500+ authors for their top 3 books of 2023.

• 🧪 Science: This weekly newsletter gives you science-backed action steps so you can help clean the world.*

• 😃 Fun: It’s Wordle, but for riddles - let me know how you get on.

Credit: r/internetisbeautiful

* This is sponsored content

STUFF THAT MIGHT HELP YOU 👌

• 📣 Advertise with us: If you're looking to reach an engaged audience of over 10,000 aspiring lawyers, drop us an email.

• 📹️ Free application help: If you're applying to commercial law firms, check out my YouTube channel for actionable tips and an insight into the lifestyle of a commercial lawyer in London.