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A Disclosure Statement outlines important facts, risks, and material information that people need to know before making significant decisions. Companies in England commonly use these statements during financial transactions, property sales, and investment offerings to protect both parties and meet their legal duty of transparency.

Under UK law, these statements help prevent fraud and ensure informed decision-making by revealing potential conflicts of interest, financial conditions, and relevant business details. They're particularly vital in regulated sectors like financial services, where the Financial Conduct Authority requires clear disclosure to protect consumers and maintain market integrity.

Use a Disclosure Statement when you need to communicate significant information that could affect someone's decision-making, especially in financial or business transactions. Common triggers include selling shares in a private company, offering investment opportunities, or entering complex commercial agreements where hidden risks or conflicts of interest might exist.

The statement becomes essential before mergers and acquisitions, when seeking investment funding, or during property transactions where material facts must be revealed. UK regulators require these statements for regulated financial products, pension transfers, and certain corporate transactions - particularly when dealing with retail customers or when significant sums are involved.

• Financial Disclosure Statements detail company financial health, risks, and performance metrics - commonly used in investment contexts and regulated by the FCA
• Property Disclosure Statements reveal material facts about real estate conditions and legal issues before sale
• Corporate Transaction Statements outline business relationships, conflicts of interest, and material information during mergers or acquisitions
• Product Disclosure Statements explain features, risks, and costs of financial products to retail customers
• Employment Disclosure Statements cover confidentiality requirements, insider information policies, and conflict declarations for key personnel

• Company Directors and Officers: Prepare and sign Disclosure Statements to reveal material information about their business operations and financial status
• Financial Advisors: Draft and review statements for investment products, ensuring FCA compliance and clear risk communication
• Property Sellers: Must provide accurate disclosures about property conditions and legal issues
• Legal Professionals: Review and validate statements for accuracy and regulatory compliance
• Regulatory Bodies: Monitor and enforce disclosure requirements, particularly in financial services and corporate transactions

• Gather Key Facts: Compile all material information, financial data, and relevant business details that could influence decisions
• Identify Risks: List potential risks, conflicts of interest, and material issues that need disclosure
• Check Requirements: Review industry-specific regulations and FCA guidelines for mandatory disclosure elements
• Draft Clearly: Use our platform to generate a legally-sound Disclosure Statement with all required components
• Internal Review: Have key stakeholders verify accuracy and completeness of all disclosed information
• Document Trail: Maintain records of information sources and verification processes

• Identity Details: Full legal names and roles of all parties involved in the disclosure
• Material Information: Clear statements of all significant facts, risks, and circumstances being disclosed
• Declaration Section: Confirmation that information provided is true, accurate, and complete
• Governing Law: Explicit statement that English law governs the disclosure
• Data Protection: GDPR compliance statements and data handling procedures
• Signature Block: Date, signatures of authorized parties, and witness requirements
• Regulatory Compliance: Industry-specific requirements and FCA guidelines where applicable

A Disclosure Statement differs significantly from a Disclosure Agreement in several key aspects, though they're often confused. While both deal with sharing information, their purposes and legal implications vary considerably.

• Legal Nature: A Disclosure Statement is a one-way declaration of facts and risks, while a Disclosure Agreement creates mutual obligations between parties
• Timing and Use: Statements typically come before major transactions or decisions, while Agreements govern ongoing information sharing
• Enforcement: Statements primarily serve as evidence of transparency and due diligence, while Agreements create legally binding confidentiality obligations
• Structure: Statements list material facts and risks in a clear format, while Agreements include detailed terms, conditions, and remedies for breach
• Purpose: Statements inform decision-making and reduce liability, while Agreements protect sensitive information and create confidentiality duties