LR Listing Rules

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LR 1

Preliminary

LR 1.1

Introduction

01/07/2005

Application

LR 1.1.1

LR applies as follows:

(1) all of LR (other than LR 8.3, LR 8.4, LR 8.6 and LR 8.7) applies to an issuer; and
(2) LR 1, LR 8.1, LR 8.3, LR 8.4, LR 8.6 and LR 8.7 apply to a sponsor and a person applying for approval as a sponsor.

FSA performing functions as competent authority
Note: In relation to the listing rules, the FSA is performing functions as the competent authority under Part VI of the Act (see section 72(1) of the Act).
Note: when exercising its functions as the competent authority under Part VI of the Act, the FSA may use the name: the UK Listing Authority.
Other relevant parts of Handbook
Note: Other parts of the Handbook that may also be relevant to issuers or sponsors include DTR (the Disclosure Rules and Transparency Rules sourcebook), PR (the Prospectus Rules sourcebook), COBS (the Conduct of Business sourcebook), DEPP (Decision Procedure and Penalties Manual), Chapter 9 of SUP (the Supervision manual) and GEN (General Provisions).

The following Regulatory Guides may also be relevant to issuers or sponsors:
1. The Enforcement Guide (EG)
2. [intentionally blank]

01/11/2007
Past version of LR 1.1.1 before 01/11/2007

LR 1.2

Modifying rules and consulting the FSA

01/07/2005

Modifying or dispensing with rules

LR 1.2.1

(1) The FSA may dispense with or modify the listing rules in such cases and by reference to such circumstances as it considers appropriate (subject to the terms of EU directives and the Act).
(2) A dispensation or modification may be either unconditional or subject to specified conditions.
(3) If an issuer or sponsor has applied for, or been granted, a dispensation or modification, it must notify the FSA immediately it becomes aware of any matter which is material to the relevance or appropriateness of the dispensation or modification.
(4) The FSA may revoke or modify a dispensation or modification.

01/07/2005

LR 1.2.2

(1) An application to the FSA to dispense with or modify a listing rule must be in writing.
(2) The application must:

(a) contain a clear explanation of why the dispensation or modification is requested;
(b) include details of any special requirements, for example, the date by which the dispensation or modification is required;
(c) contain all relevant information that should reasonably be brought to the FSA's attention;
(d) contain any statement or information that is required by the listing rules to be included for a specific type of dispensation or modification; and
(e) include copies of all documents relevant to the application.

01/07/2005

LR 1.2.3

An application to dispense with or modify a listing rule should ordinarily be made:

(1) for a listing rule that is a continuing obligation, at least five business days before the proposed dispensation or modification is to take effect; and
(2) for any other listing rule, at least ten business days before the proposed dispensation or modification is to take effect.

01/07/2005

Companies in severe financial difficulty

LR 1.2.4

If an issuer applies to the FSA to dispense with or modify a listing rule on the basis that it is in severe financial difficulty, the FSA would ordinarily expect the issuer to comply with the conditions in LR 10.8 (to the extent relevant to the particular rule for which the dispensation or modification is sought). In particular, the FSA would expect the issuer to comply with those conditions that are directed at demonstrating that it is in severe financial difficulty.

01/07/2005

Early consultation with FSA

LR 1.2.5

An issuer or sponsor should consult with the FSA at the earliest possible stage if it:

(1) is in doubt about how the listing rules apply in a particular situation; or
(2) considers that it may be necessary for the FSA to dispense with or modify a listing rule.

Address for correspondence
Note: The FSA's address for correspondence is:

The Financial Services Authority

25 The North Colonnade

Canary Wharf

London, E14 5HS

Tel: 020 7066 8333

Fax: 020 7066 8362

http://www.fsa.gov.uk/Pages/Doing/UKLA/index.shtml

01/07/2005
Future version of LR 1.2.5 after 06/01/2011

LR 1.3

Information gathering and publication

01/07/2005

Information gathering

LR 1.3.1

An issuer must provide to the FSA as soon as possible:

(1) any information and explanations that the FSA may reasonably require to decide whether to grant an application for admission;
(2) any information that the FSA considers appropriate to protect investors or ensure the smooth operation of the market; and [Note: Article 16.1 CARD]
(3) any other information or explanation that the FSA may reasonably require to verify whether listing rules are being and have been complied with.

01/07/2005

FSA may require issuer to publish information

LR 1.3.2

(1) The FSA may, at any time, require an issuer to publish such information in such form and within such time limits as it considers appropriate to protect investors or to ensure the smooth operation of the market. [Note: Article 16.2 CARD]
(2) If an issuer fails to comply with a requirement under paragraph (1) the FSA may itself publish the information (after giving the issuer an opportunity to make representations as to why it should not be published). [Note: Article 16.2 CARD]

01/07/2005

Misleading information not to be published

LR 1.3.3

An issuer must take reasonable care to ensure that any information it notifies to a RIS or makes available through the FSA is not misleading, false or deceptive and does not omit anything likely to affect the import of the information.

01/07/2005

Notification when a RIS is not open for business

LR 1.3.4

If an issuer is required to notify information to a RIS at a time when a RIS is not open for business it must distribute the information as soon as possible to:

(1) not less than two national newspapers in the United Kingdom;
(2) two newswire services operating in the United Kingdom; and
(3) a RIS for release as soon as it opens.

01/07/2005

LR 1.4

Miscellaneous

01/07/2005

Appointment of sponsor

LR 1.4.1

(1) If it appears to the FSA that there is, or there may be, a breach of the listing rules by an issuer with a primary listing, the FSA may in writing require the issuer to appoint a sponsor to advise the issuer on the application of the listing rules.
(2) If required to do so under paragraph (1), an issuer must, as soon as practicable, appoint a sponsor to advise it on the application of the listing rules.

Note: LR 8.2 sets out the various circumstances in which an issuer must appoint, or obtain guidance from, a sponsor.

01/07/2005
Future version of LR 1.4.1 after 06/04/2010

Overseas companies

LR 1.4.2

If a listing rule refers to a requirement in legislation applicable to a listed company incorporated in the United Kingdom, a listed overseas company must comply with the requirement so far as:

(1) information available to it enables it to do so; and
(2) compliance is not contrary to the law in its country of incorporation.

01/07/2005

LR 1.4.3

A listed overseas company must, if required to do so by the FSA, provide the FSA with a letter from an independent legal adviser explaining why compliance with a requirement referred to in LR 1.4.2 R is contrary to the law in its country of incorporation.

01/07/2005

English language

LR 1.4.6

A document that is required under a listing rule to be filed, notified to a RIS, provided to the FSA or sent to security holders must be in English.

01/07/2005

Market abuse safe harbours

LR 1.4.7

Pursuant to section 118A(5) of the Act, behaviour conforming with the listing rules specified in LR 1 Annex 1 R does not amount to market abuse under section 118(1) of the Act.

01/07/2005

Fees

LR 1.4.8

The provisions relating to periodic fees for issuers and sponsors are set out in FEES 1, 2 and 4.

01/01/2006
Past version of LR 1.4.8 before 01/01/2006

Electronic Communication

LR 1.4.9

(1) If the listing rules require an issuer to send documents to its security holders, the issuer may, in accordance with DTR 6.1.8 R, use electronic means to send those documents.

20/01/2007
Past version of LR 1.4.9 before 20/01/2007

LR 1 Annex 1

Market abuse safe harbours

01/07/2005

The listing rules referred to in LR 1.4.7 R are:

(1)

LR 1.3.3 R (Misleading information not to be published);

(2)

LR 1.3.4 R (Notification when a RIS is not open for business);

(3)

Paragraphs 20, 21 and 22 of the Annex to LR 9 (The Model Code)(Dealings by connected persons and investment managers);

(4)

LR 9.6.6 R (Notifications relating to capital);

(5)

LR 9.6.7 R, LR 9.6.8 R, and LR 9.6.10 G (Notifications of major interests in shares);

(6)

LR 9.7.1 R and LR 9.7.2 R (Preliminary statement of annual results and dividends);

(7)

LR 9.9.3 R

(8)

LR 12.2.1 R (4) (Prohibition on purchase of own securities);

(9)

LR 12.4.6 R (Notification of purchases);

(10)

LR 12.5.2 R and LR 12.5.3 R (Notifications of purchases, early redemptions and cancellations);

(11)

LR 13.3.1 R (1) and LR 13.3.1 R (2) (Contents of all circulars);

(12)

LR 14.3.19 R and LR 14.3.21 R (Notification of major interests in shares);

(13)

LR 14.4.10 R; and

(14)

LR 17.3.4 R (Annual accounts).

01/07/2005

Export chapter as

Legal Instruments that change this Chapter Preliminary

LR 2

Requirements
for listing

LR 2.1

Preliminary

01/07/2005

Application

LR 2.1.1

This chapter applies to all applicants for admission to listing (unless a rule is specified only to apply to a particular type of applicant or security).

01/07/2005

Refusal of applications

LR 2.1.2

Under the Act, the FSA may not grant an application for admission unless it is satisfied that:

(1) the requirements of the listing rules are complied with; and
(2) any special requirement (see LR 2.1.4 R) is complied with.

01/07/2005

LR 2.1.3

Under the Act, the FSA may also refuse an application for admission if it considers that:

(1) admission of the securities would be detrimental to investors' interests; or
(2) for securities already listed in another EEA State, the issuer has failed to comply with any obligations under that listing.

01/07/2005

Special requirements

LR 2.1.4

(1) The FSA may make the admission of securities subject to any special requirement that it considers appropriate to protect investors. [Note: article 12 CARD]
(2) The FSA must explicitly inform the issuer of any special requirement that it imposes. [Note: article 12 CARD]

01/07/2005

No conditional admission

LR 2.1.5

The FSA is not able to make the admission of securities conditional on any event. The FSA may, in particular cases, seek confirmation from an issuer before the admission of securities that the admission does not purport to be conditional on any matter.

06/08/2007

LR 2.2

Requirements for all securities

01/07/2005

Incorporation

LR 2.2.1

An applicant (other than a public sector issuer) must be:

(1) duly incorporated or otherwise validly established according to the relevant laws of its place of incorporation or establishment; and
(2) operating in conformity with its constitution. [Note: articles 42 and 52 CARD]

01/07/2005

Validity

LR 2.2.2

To be listed, securities must:

(1) conform with the law of the applicant's place of incorporation;
(2) be duly authorised according to the requirements of the applicant's constitution; and
(3) have any necessary statutory or other consents. [Note: articles 45 and 53 CARD]

01/07/2005

Admission to trading

LR 2.2.3

To be listed, securities must be admitted to trading on an RIE's market for listed securities.

01/07/2005
Future version of LR 2.2.3 after 06/04/2010

Transferability

LR 2.2.4

(1) To be listed, securities must be freely transferable. [Note: articles 46, 54 and 60 CARD]
(2) To be listed, shares must be fully paid and free from all liens and from any restriction on the right of transfer (except any restriction imposed for failure to comply with a notice under section 793 of the Companies Act 2006 (Notice by company requiring information about interests in its shares)).

06/08/2007
Past version of LR 2.2.4 before 06/08/2007

LR 2.2.5

The FSA may modify LR 2.2.4 R to allow partly paid securities to be listed if it is satisfied that their transferability is not restricted and investors have been provided with appropriate information to enable dealings in the securities to take place on an open and proper basis. [Note: articles 46 and 54 CARD]

01/07/2005

LR 2.2.6

The FSA may in exceptional circumstances modify or dispense with LR 2.2.4 R where the applicant has the power to disapprove the transfer of shares if the FSA is satisfied that this power would not disturb the market in those shares. [Note: article 46 CARD]

01/07/2005

Market capitalisation

LR 2.2.7

(1) The expected aggregate market value of all securities (excluding treasury shares) to be listed must be at least:

(a) £700,000 for shares; and
(b) £200,000 for debt securities.

(2) Paragraph (1) does not apply to tap issues where the amount of the debt securities is not fixed.
(3) Paragraph (1) does not apply if securities of the same class are already listed. [Note: articles 43 and 48 CARD]

01/07/2005

LR 2.2.8

The FSA may modify LR 2.2.7 R to admit securities of a lower value if it is satisfied that there will be an adequate market for the securities concerned. [Note: articles 43 and 58 CARD]

01/07/2005

Whole class to be listed

LR 2.2.9

An application for listing of securities of any class must:

(1) if no securities of that class are already listed, relate to all securities of that class, issued or proposed to be issued; or
(2) if securities of that class are already listed, relate to all further securities of that class, issued or proposed to be issued. [Note: articles 49, 56 and 62 CARD]

01/07/2005

Prospectus

LR 2.2.10

(1) This rule applies if under the Act or under the law of another EEA State:

(a) a prospectus must be approved and published for the securities; or
(b) the applicant is permitted and elects to draw up a prospectus for the securities.

(2) To be listed:

(a) a prospectus must have been approved by the FSA and published in relation to the securities; or
(b) if another EEA State is the Home Member State for the securities, the relevant competent authority must have supplied the FSA with:

(i) a certificate of approval;
(ii) a copy of the prospectus as approved; and
(iii) (if applicable) a translation of the summary of the prospectus.

01/07/2005

Listing particulars

LR 2.2.11

(1) This rule applies if, under LR 4, listing particulars must be approved and published for securities.
(2) To be listed, listing particulars for the securities must have been approved by the FSA and published in accordance with LR 4.

01/07/2005

Convertible securities

LR 2.2.12

Convertible securities may be admitted to listing only if the securities into which they are convertible are already, or will become at the same time:

(1) listed securities; or
(2) securities listed on a regulated, regularly operating, recognised open market. [Note: article 59 CARD]

01/07/2005
Future version of LR 2.2.12 after 06/04/2010

LR 2.2.13

The FSA may dispense with LR 2.2.12 R if it is satisfied that holders of the convertible securities have at their disposal all the information necessary to form an opinion about the value of the underlying securities. [Note: article 59 CARD]

01/07/2005

Warrants or options to subscribe

LR 2.2.14

The requirements for listing of warrants to subscribe, or options to subscribe, for equity securities (not being options or warrants accompanied by other securities) are the same as would apply if the application was for listing of the equity securities to be subscribed.

01/07/2005

Export chapter as

Legal Instruments that change this Chapter Requirements for listing

LR 3

Listing applications

LR 3.1

Application

01/07/2005

LR 3.1.1

This chapter applies to an applicant for the admission of securities.

01/07/2005

LR 3.2

Application for admission to listing

01/07/2005

Location of official list

LR 3.2.1

The FSA will maintain the official list on its website.

01/07/2005

Method of application

LR 3.2.2

An applicant for admission must apply to the FSA by:

(1) submitting, in final form:

(a) the documents described in LR 3.3 in the case of an application in respect of equity securities;
(b) the documents described in LR 3.4 in the case of an application in respect of debt securities or other securities;
(c) the documents described in LR 3.5 in the case of a block listing;

(2) submitting all additional documents, explanations and information as required by the FSA;
(3) submitting verification of any information in such manner as the FSA may specify; and
(4) paying the fee set out in FEES 3 by the required date.

LR 3.2.3

Before submitting the documents referred to in LR 3.2.2 R (1), an applicant should contact the FSA to agree the date on which the FSA will consider the application.

01/07/2005
Future version of LR 3.2.3 after 06/08/2009

LR 3.2.4

All documents must be submitted to the Listing Applications team at the FSA's address.

01/07/2005

Grant of an application for admission to listing

LR 3.2.5

The FSA will admit securities to listing if all relevant documents required by LR 3.2.2 R have been submitted to the FSA.

06/08/2007
Past version of LR 3.2.5 before 06/08/2007

LR 3.2.6

When considering an application for admission to listing, the FSA may:

(1) carry out any enquiries and request any further information which it considers appropriate, including consulting with other regulators or exchanges;
(2) request that an applicant, or its specified representative answer questions and explain any matter the FSA considers relevant to the application for listing;
(3) take into account any information which it considers appropriate in relation to the application for listing;
(4) request that any information provided by the applicant be verified in such manner as the FSA may specify; and
(5) impose any additional conditions on the applicant as the FSA considers appropriate.

01/07/2005

LR 3.2.7

The admission becomes effective only when the FSA's decision to admit the securities to listing has been announced by being either:

(1) disseminated by a RIS; or
(2) posted on a notice board designated by the FSA should the electronic systems be unavailable.

01/07/2005

LR 3.3

Equity securities

01/07/2005
Future version of LR 3.3 after 06/04/2010

Application

LR 3.3.1

LR 3.3.2 R to LR 3.3.7 R apply to an applicant which is applying for:

(1) a primary listing of its equity shares;
(2) a primary listing of its preference shares;
(3) a primary listing of its securities that are convertible into equity shares; or
(4) a secondary listing of its equity shares.

Documents to be provided 48 hours in advance

LR 3.3.2

The following documents must be submitted, in final form, to the FSA by midday two business days before the FSA is to consider the application:

(1) a completed Application for Admission of Securities to the Official List;
(2) one of:

(a) the prospectus, or listing particulars, that has been approved by the FSA; or
(b) a copy of the prospectus, a certificate of approval and (if applicable) a translation of the summary of the prospectus, if another EEA State is the home Member State for the securities; or
(c) [deleted]

(3) any circular that has been published in connection with the application, if applicable;
(4) any approved supplementary prospectus or approved supplementary listing particulars, if applicable;
(5) written confirmation of the number of securities to be allotted (pursuant to a board resolution allotting the securities); and [Note: If this is not possible, see LR 3.3.4 R.]
(6) if a prospectus or listing particulars have not been produced, a copy of the RIS announcement detailing the number and type of securities that are the subject of the application and the circumstances of their issue.

Note: The Application for Admission of Securities to the Official List form can be found on the UKLA section of the FSA website.

LR 3.3.2A

If a prospectus or listing particulars have not been produced then the Application for Admission of Securities to the Official List must contain confirmation that a prospectus or listing particulars are not required and details of the reasons why they are not required.

06/08/2007

Documents to be provided on the day

LR 3.3.3

The following documents signed by a sponsor (if a sponsor is required under LR 8) or by a duly authorised officer of the applicant (if a sponsor is not required under LR 8) must be submitted, in final form, to the FSA before 9 a.m. on the day the FSA is to consider the application:

(1) a completed Shareholder Statement, in the case of an applicant that is applying for a listing of a class of equity shares or preference shares for the first time; or [Note: see LR 8.4.3 R and LR 8.4.9 R].
(2) a completed Pricing Statement, in the case of a placing, open offer, vendor consideration placing, offer for subscription of equity shares or an issue out of treasury of equity shares of a class already listed. [Note: see LR 8.4.3 R and LR 8.4.9 R].

Note: The Shareholder Statement and the Pricing Statement forms can be found on the UKLA section of the FSA website.

LR 3.3.4

If written confirmation of the number of securities to be allotted pursuant to a board resolution cannot be submitted to the FSA by the deadline set out in LR 3.3.2 R or, the number of securities to be admitted is lower than the number notified under LR 3.3.2 R, written confirmation of the number of securities to be allotted or admitted must be provided to the FSA by the applicant or its sponsor at least one hour before the admission to listing is to become effective.

LR 3.3.4A

If the FSA has considered an application for listing and the securities the subject of the application are not all allotted and admitted following the initial allotment of the securities (for example, under an offer for subscription), further allotments of securities may be admitted if before 4pm on the day before admission is sought the FSA has been provided with:

(1) written confirmation of the number of securities allotted pursuant to a board resolution; and
(2) a copy of the RIS announcement detailing the number and type of securities and the circumstances of their issue.

06/08/2007
Future version of LR 3.3.4A after 06/04/2010

Documents to be kept

LR 3.3.6

An applicant must keep copies of the following for six years after the admission to listing:

(1) any agreement to acquire any assets, business or shares in consideration for or in relation to which the company's securities are being issued;
(2) any letter, report, valuation, contract or other documents referred to in the prospectus, listing particulars, circular or other document issued in connection with those securities;
(3) the applicant's constitution as at the date of admission;
(4) the annual report and accounts of the applicant and of any guarantor, for each of the periods which form part of the applicant's financial record contained in the prospectus or listing particulars;
(5) any interim accounts made up since the date to which the last annual report and accounts were made up and prior to the date of admission;
(6) any temporary and definitive documents of title;
(7) in the case of an application in respect of securities issued pursuant to an employees' share scheme, the scheme document;
(8) where listing particulars or another document are published in connection with any scheme requiring court approval, any court order and the certificate of registration issued by the Registrar of Companies; and
(9) copies of board resolutions of the applicant allotting or issuing the securities.

LR 3.3.7

An applicant must provide to the FSA the documents set out in LR 3.3.6 R, if requested to do so.

01/07/2005

LR 3.4

Debt and other securities

01/07/2005

Application - debt securities etc

LR 3.4.1

LR 3.4.4 R to LR 3.4.6 R apply to an applicant that is seeking admission of any of the following types of securities:

(1) debt securities;
(2) asset-backed securities;
(3) certificates representing certain securities; and
(4) [deleted]
(5) convertible securities other than those referred to in LR 3.3.1R (3).

Application - issuance programmes

LR 3.4.2

LR 3.4.7 R to LR 3.4.8 R apply to an applicant for the admission of a debt securities or asset-backed securities issuance programme.

06/08/2007
Past version of LR 3.4.2 before 06/08/2007

Application - public sector issuers

LR 3.4.3

LR 3.4.9 R to LR 3.4.13 R apply to an applicant that is a public sector issuer.

01/07/2005

Documents to be provided 48 hours in advance

LR 3.4.4

An applicant must submit, in final form, to the FSA by midday two business days before the FSA is to consider the application:

(1) a completed Application for Admission of Securities to the Official List;
(2) either:

(a) the prospectus, or listing particulars that has been approved by the FSA; or
(b) a copy of the prospectus, a certificate of approval and (if applicable) a translation of the summary of the prospectus, if another EEA State is the home Member State for the securities;

(3) any approved supplementary prospectus or approved supplementary listing particulars, if applicable; and
(4) written confirmation of the number of securities to be issued (pursuant to a board resolution). [Note: if this is not possible, see LR 3.4.5 R]

Note: The Application for Admission of Securities to the Official List form can be found on the UKLA section of the FSA's website.

06/08/2007
Past version of LR 3.4.4 before 06/08/2007

Documents to be provided on the day of admission

LR 3.4.5

If confirmation of the number of securities to be issued pursuant to a board resolution cannot be submitted to the FSA by the deadline set out in LR 3.4.4 R or, the number of securities to be admitted is lower than the number notified under LR 3.4.4 R, written confirmation of the number of securities to be issued or admitted must be provided to the FSA by the applicant at least one hour before the admission to listing is to become effective.

06/08/2007
Past version of LR 3.4.5 before 06/08/2007

Documents to be kept

LR 3.4.6

An applicant must keep, for six years after the admission to listing, a copy of the items set out in LR 3.3.6 R (1) to (6) and LR 3.3.6 R (9) and must provide any of those documents to the FSA if requested to do so.

06/08/2007
Past version of LR 3.4.6 before 06/08/2007

Procedure for issuance programmes: initial offering and increase to programme size

LR 3.4.7

An applicant must comply with LR 3.4.4 R to LR 3.4.6 R with the following modifications:

(1) [deleted]
(2) if the FSA approves the application it will admit to listing all debt securities which may be issued under the programme within 12 months after the publication of the base prospectus or listing particulars subject to the FSA:

(a) being advised of the final terms of each issue for which a listing is sought; and
(b) receiving and approving for publication any supplementary documents that may be appropriate.
(c) [deleted]

(3) an applicant must submit a supplementary prospectus or supplementary listing particulars instead of the document required by LR 3.4.4 R (2) in the case of an increase in the maximum amount of debt securities which may be in issue and listed at any one time under an issuance programme.

06/08/2007
Past version of LR 3.4.7 before 06/08/2007

LR 3.4.7A

An applicant for the admission of securities under an issuance programme must confirm in its Application for Admission of Securities to the Official List that at admission all of the securities the subject of the application will be in issue pursuant to board resolutions authorising the issue.

06/08/2007

Issuance programmes: final terms

LR 3.4.8

(1) The final terms must be submitted in writing to the FSA as soon as possible after they have been agreed and no later than 2 p.m. on the day before listing is to become effective.
(2) The final terms may be submitted by:

(a) the applicant; or
(b) a duly authorised officer of the applicant.

(3) [deleted]

Note: For further details on final terms, see PR 2.2.9 R.

06/08/2007
Past version of LR 3.4.8 before 06/08/2007

Exempt public sector issuers

LR 3.4.9

A public sector issuer that seeks admission of debt securities referred to in paragraphs 2 and 4 of Schedule 11A of the Act must submit to the FSA in final form a completed Application for Admission of Securities to the Official List.

Note: The Application for Admission of Securities to the Official List form can be found on the UKLA section of the FSA's website.

06/08/2007
Past version of LR 3.4.9 before 06/08/2007

LR 3.4.9A

An application referred to in LR 3.4.9 R should be made in accordance with the timetable referred to in LR 3.4.8 R.

06/08/2007

LR 3.4.9B

A public sector issuer that is not required to produce a prospectus or listing particulars must confirm on its application form that no prospectus or listing particulars are required.

06/08/2007

LR 3.4.9C

Apart from LR 3.4.9 R, LR 3.4.9A G and LR 3.4.9B G no other provisions in LR 3.4 apply to the admission of debt securities referred to in paragraphs 2 and 4 of Schedule 11A of the Act.

06/08/2007

Other public sector issuers

LR 3.4.10

LR 3.4.7 R, LR 3.4.8 R and LR 3.4.11 R to LR 3.4.13 R apply to applications for admission to listing of debt securities by a public sector issuer other than one referred to in LR 3.4.9 R.

06/08/2007
Past version of LR 3.4.10 before 06/08/2007

LR 3.4.11

An applicant referred to in LR 3.4.10 R must submit the items set out in LR 3.4.4 R to the FSA in final form by midday two business days before the FSA is to consider the application.

06/08/2007
Past version of LR 3.4.11 before 06/08/2007

LR 3.4.13

An applicant referred to in LR 3.4.10 R must keep, for six years after the admission to listing, a copy of the items set out in LR 3.3.6 R (1) to LR 3.3.6 R (6) and in LR 3.3.6 R (9).

06/08/2007
Past version of LR 3.4.13 before 06/08/2007

LR 3.5

Block listing

06/08/2007
Past version of LR 3.5 before 06/08/2007

Application

LR 3.5.1

This section applies to an applicant that wishes to apply for admission of securities using a block listing.

06/08/2007
Past version of LR 3.5.1 before 06/08/2007

When a block listing can be used

LR 3.5.2

If the process of applying for admission of securities is likely to be very onerous due to the frequent or irregular nature of allotments and if no prospectus or listing particulars are required for the securities, an applicant may apply for a block listing of a specified number of the securities.

06/08/2007
Past version of LR 3.5.2 before 06/08/2007

LR 3.5.3

The grant of a block listing constitutes admission to listing for the securities that are the subject of the block. Separately, the provisions of PR 1.2.2 R will need to be considered by the applicant when the securities that are the subject of the block listing are being issued.

06/08/2007
Past version of LR 3.5.3 before 06/08/2007

LR 3.5.4

An applicant applying for admission to listing by way of a block listing must submit in final form, at least two business days before the FSA is to consider the application, a completed Application for Admission of Securities to the Official List. An application in respect of multiple schemes must identify the schemes but need not set out separate block listing amounts for each scheme.

Note: The Application for Admission of Securities to the Official List form can be found on the UKLA section of the FSA website.

06/08/2007
Past version of LR 3.5.4 before 06/08/2007

LR 3.5.5

(1) An applicant applying for admission to listing by way of a block listing must notify an RIS of the number and type of securities that are the subject of the block listing application and the circumstances of their issue.
(2) The notification in paragraph (1) must be made by 9 a.m. on the day the FSA is to consider the application.

01/07/2005

LR 3.5.6

Every six months the applicant must notify a RIS of the details of the number of securities covered by the block listing which have been allotted in the previous six months, using the Block Listing Six Monthly Return.

Note: A copy of the Block Listing Six Monthly Return can be found on the UKLA section of the FSA website.

06/08/2007
Past version of LR 3.5.6 before 06/08/2007

LR 3.5.7

An issuer that wishes to synchronise block listing six monthly returns for a number of block listing facilities may do so by providing the return required by LR 3.5.6 R earlier than required to move the timing of returns onto a different six monthly cycle. An issuer with multiple block listing facilities should ensure that allotments under each facility are separately stated.

06/08/2007
Past version of LR 3.5.7 before 06/08/2007

Export chapter as

Legal Instruments that change this Chapter Listing applications

LR 4

Listing particulars for
professional securities market and certain other securities

LR 4.1

Application and Purpose

01/07/2005

Application

LR 4.1.1

This chapter applies to an issuer that has applied for the admission of:

(1) securities specified in Schedule 11A of the Act (other than securities specified in paragraphs 2, 4 or 9 of that Schedule); or
(2) any other specialist securities for which a prospectus is not required under the prospectus directive.

01/07/2005

Purpose

LR 4.1.2

(1) The purpose of this chapter is to require listing particulars to be prepared and published for securities that are the subject of an application for listing in the circumstances set out in LR 4.1.1 R where a prospectus is not required under the prospectus directive.

01/07/2005

Listing particulars to be approved and published

LR 4.1.3

An issuer must ensure that listing particulars for securities referred to in LR 4.1.1 R are approved by the FSA and published in accordance with LR 4.3.5 R.

Note: Under LR 2.2.11 R, the securities will only be listed if listing particulars for the securities have been approved by the FSA and published.

01/07/2005

LR 4.2

Contents and format of listing particulars

01/07/2005

General contents of listing particulars

LR 4.2.1

Section 80 (1) of the Act (general duty of disclosure in listing particulars) requires listing particulars submitted to the FSA to contain all such information as investors and their professional advisers would reasonably require, and reasonably expect to find there, for the purpose of making an informed assessment of:

(1) the assets and liabilities, financial position, profits and losses, and prospects of the issuer of the securities; and
(2) the rights attaching to the securities.

01/07/2005

Summary

LR 4.2.2

(1) The listing particulars must contain a summary that complies with the requirements in section 87A(5) and (6) of the Act and PR 2.1.4 EU to PR 2.1.7 R (as if those requirements applied to the listing particulars).
(2) Paragraph (1) does not apply:

(a) in relation to specialist securities referred to in LR 4.1.1R (2); or
(b) if, in accordance with PR 2.1.3 R, no summary would be required in relation to the securities.

01/07/2005

Format of listing particulars

LR 4.2.3

(1) The listing particulars must be in a format that complies with the relevant requirements in PR 2.2 and the PD Regulation (as if those requirements applied to the listing particulars).

01/07/2005

Minimum information to be included

LR 4.2.4

The following minimum information from the PD Regulation must be included in listing particulars:

(1) for an issue of bonds including bonds convertible into the issuer's shares or exchangeable into a third party issuer's shares or derivative securities, irrespective of the denomination of the issue, the minimum information required by the schedules applicable to debt and derivative securities with a denomination per unit of at least 50,000 euros;
(2) the additional information required by the underlying share building block where relevant;
(3) for an issue of asset-backed securities, irrespective of the denomination per unit of the issue, the minimum information required by the schedules and building blocks applicable to asset-backed securities with a denomination per unit of at least 50,000 euros;
(4) for an issue of certificates representing shares, irrespective of the denomination per unit of the issue, the schedule applicable to depositary receipts over shares with a denomination per unit of at least 50,000 euros (except that item 13.2 (relating to profit forecasts) in Annex 10 is not to apply);
(5) for an issue of securities by the government of a non-EEA State or a local or regional authority of a non-EEA State, the schedule applicable to securities issued by third countries and their regional and local authorities; and
(6) for all issues that are guaranteed, the information in the guarantee building block.

01/07/2005
Future version of LR 4.2.4 after 01/07/2012

LR 4.2.5

For all other issues the FSA would expect issuers to follow the most appropriate schedules and building blocks in the PD Regulation to determine the minimum information to be included in listing particulars.

01/07/2005

Incorporation by reference

LR 4.2.6

An issuer may incorporate information by reference in the listing particulars as if PR 2.4 and the PD Regulation applied to the listing particulars.

01/07/2005

Equivalent information

LR 4.2.7

An issuer may include equivalent information in listing particulars as if PR 2.5.1 R applied to the listing particulars.

01/07/2005

English language

LR 4.2.8

Listing particulars must be in English.

01/07/2005

Omission of information

LR 4.2.9

Under section 82 of the Act (exemptions from disclosure) the FSA may authorise the omission from listing particulars of information on specified grounds.

01/07/2005

LR 4.2.10

A request to the FSA to authorise the omission of specific information in a particular case must:

(1) be in writing from the issuer;
(2) identify the specific information concerned and the specific reasons for the omission; and
(3) state why in the issuer's opinion one or more of the grounds in section 82 of the Act applies.

01/07/2005

LR 4.2.11

For the purposes of section 82(1)(g) of the Act, specialist securities are specified.

01/07/2005

Responsibility for listing particulars

LR 4.2.12

Part 3 of the Financial Services and Markets Act 2000 (Official Listing of Securities) Regulations 2001 (SI 2001/2956) sets out the persons responsible for listing particulars. In particular, in those regulations:

(1) regulation 6 specifies who is generally responsible for listing particulars; and
(2) regulation 9 modifies the operation of regulation 6 in relation to specialist securities.

01/07/2005

LR 4.2.13

(1) In the case of listing particulars for specialist securities:

(a) the issuer must state in the listing particulars that it accepts responsibility for the listing particulars;
(b) the directors may state in the listing particulars that they accept responsibility for the listing particulars; and
(c) other persons may state in the listing particulars that they accept responsibility for all or part of the listing particulars and in that case the statement by the issuer or directors may be appropriately modified.

(2) An issuer that is the government of a non-EEA State or a local or regional authority of a non-EEA State is not required under paragraph (1)(a) to state that it accepts responsibility for the listing particulars.

01/07/2005

LR 4.3

Approval and publication of listing particulars

01/07/2005

Approval of listing particulars

LR 4.3.1

An application for approval of listing particulars or supplementary listing particulars must comply with the procedures in PR 3.1 (as if those procedures applied to the application), except that the applicant does not need to submit a completed form A.

01/07/2005

LR 4.3.2

The FSA will approve listing particulars or supplementary listing particulars if it is satisfied that the requirements of the Act and this chapter have been complied with.

01/07/2005

LR 4.3.3

The FSA will try to notify the applicant of its decision on an application for approval of listing particulars or supplementary listing particulars within the same time limits as are specified in section 87C of the Act (consideration of application for approval) for an application for approval of a prospectus or supplementary prospectus.

01/07/2005

LR 4.3.4

An issuer must ensure that listing particulars or supplementary listing particulars are not published until they have been approved by the FSA.

01/07/2005

Filing and publication of listing particulars etc

LR 4.3.5

An issuer must ensure that after listing particulars or supplementary listing particulars are approved by the FSA, the listing particulars or supplementary listing particulars are filed and published as if the relevant requirements in PR 3.2 and the PD Regulation applied to them.

01/07/2005

LR 4.4

Miscellaneous

01/07/2005

Supplementary listing particulars

LR 4.4.1

Section 81 of the Act (supplementary listing particulars) requires an issuer to submit supplementary listing particulars to the FSA for approval if at any time after listing particulars have been submitted to the FSA and before the commencement of dealings in the securities following their admission to the official list:

(1) there is a significant change affecting any matter contained in those particulars the inclusion of which was required by:

(a) section 80 of the Act (general duty of disclosure in listing particulars); or
(b) listing rules; or
(c) the FSA; or

(2) a significant new matter arises, the inclusion of information in respect of which would have been so required if it had arisen when the particulars were prepared.

01/07/2005

LR 4.4.2

An issuer must ensure that after supplementary listing particulars are approved by the FSA, the supplementary listing particulars are filed and published as if the requirements in PR 3.2 and the PD Regulation applied to them.

01/07/2005

Final terms

LR 4.4.3

If final terms of the offer are not included in the listing particulars:

(1) the final terms must be provided to investors and filed with the FSA, and made available to the public, as if the relevant requirements in PR 3.2 and the PD Regulation applied to them; and
(2) the listing particulars must disclose the criteria and/or the conditions in accordance with which the above elements will be determined or, in the case of price, the maximum price.

06/08/2007

Export chapter as

Legal Instruments that change this Chapter Listing particulars for professional securities market and certain other securities

LR 5

Suspending, cancelling and restoring listing

LR 5.1

Suspending listing

01/07/2005

FSA may suspend listing

LR 5.1.1

(1) The FSA may suspend, with effect from such time as it may determine, the listing of any securities if the smooth operation of the market is, or may be, temporarily jeopardised or it is necessary to protect investors. [Note: article 18(1) CARD]
(2) An issuer that has the listing of any of its securities suspended must continue to comply with all listing rules applicable to it.
(3) If the FSA suspends the listing of any securities, it may impose such conditions on the procedure for lifting the suspension as it considers appropriate.

01/07/2005

Examples of when FSA may suspend

LR 5.1.2

Examples of when the FSA may suspend the listing of securities include (but are not limited to) situations where it appears to the FSA that:

(1) the issuer has failed to meet its continuing obligations for listing; or
(2) the issuer has failed to publish financial information in accordance with the listing rules; or
(3) the issuer is unable to assess accurately its financial position and inform the market accordingly; or
(4) there is insufficient information in the market about a proposed transaction; or
(5) the issuer's securities have been suspended elsewhere; or
(6) the issuer has appointed administrators or receivers, or is an investment trust and is winding up; or
(7) for a securitised derivative that relates to a single underlying instrument, the underlying instrument is suspended; or
(8) for a securitised derivative that relates to a basket of underlying instruments, one or more underlying instruments of the basket are suspended.

01/07/2005
Future version of LR 5.1.2 after 06/04/2010

LR 5.1.3

The FSA will not suspend the listing of a security to fix its price at a particular level.

01/07/2005

Suspension at issuer's request

LR 5.1.4

An issuer that intends to request the FSA to suspend the listing of its securities will need to comply with LR 5.3. The FSA will not suspend the listing if it is not satisfied that the circumstances justify the suspension.

01/07/2005

LR 5.2

Cancelling listing

01/07/2005

FSA may cancel listing

LR 5.2.1

The FSA may cancel the listing of securities if it is satisfied that there are special circumstances that preclude normal regular dealings in them.

[Note: article 18(2) CARD]

01/07/2005

Examples of when FSA may cancel

LR 5.2.2

Examples of when the FSA may cancel the listing of securities include (but are not limited to) situations where it appears to the FSA that:

(1) the securities are no longer admitted to trading as required by these rules; or
(2) the issuer no longer satisfies its continuing obligations for listing, for example if the percentage of shares in public hands falls below 25% or such lower percentage as the FSA may permit (the FSA may however allow a reasonable time to restore the percentage, unless this is precluded by the need to maintain the smooth operation of the market or to protect investors); or
(3) the securities listing has been suspended for more than six months.

01/07/2005
Future version of LR 5.2.2 after 06/04/2010

LR 5.2.3

The FSA will generally cancel the listing of a listed company's securities when it completes a reverse takeover.

01/07/2005
Future version of LR 5.2.3 after 06/04/2010

Cancellation at issuer's request

LR 5.2.4

An issuer must satisfy the requirements applicable to it in LR 5.2.5 R to LR 5.2.11 R and LR 5.3 before the FSA will cancel the listing of its securities at its request.

01/07/2005

LR 5.2.4A

LR 5.2.4 R applies even if the listing of the securities is suspended.

06/08/2007

Cancellation of listing of ordinary shares

LR 5.2.5

Subject to LR 5.2.6 R LR 5.2.7 R, LR 5.2.10 R and LR 5.2.12 R, an issuer that wishes the FSA to cancel the listing of any of its equity shares with a primary listing must:

(1) send a circular to the holders of the securities. The circular must:

(a) comply with the requirements of LR 13.3.1 R and LR 13.3.2 R (contents of all circulars);
(b) be submitted to the FSA for approval prior to publication; and
(c) include the anticipated date of cancellation (which must be not less than 20 business days following the passing of the resolution referred to in paragraph (2));

(2) obtain, at a general meeting, the prior approval of a resolution for the cancellation from a majority of not less than 75% of the holders of the securities as (being entitled to do so) vote in person or, where proxies are allowed, by proxy;
(3) notify a RIS, at the same time as the circular is despatched to the relevant security holders, of the intended cancellation and of the notice period and meeting; and
(4) also notify a RIS of the passing of the resolution in accordance with LR 9.6.18 R.

LR 5.2.5A

An issuer that wishes to cancel the secondary listing of its ordinary equity shares must also comply with the requirements in LR 5.2.5 R if:

(1) the shares have previously been converted from being primary listed to secondary listed; and
(2) the conversion has taken place within 2 years before the proposed cancellation of the secondary listing of the shares.

06/08/2007
Future version of LR 5.2.5A after 06/04/2010

LR 5.2.6

An issuer is not required to seek the prior approval of the holders of the ordinary equity shares for which a cancellation is being sought in accordance with LR 5.2.5 R (2) or LR 5.2.5A R if the shares are admitted to trading on a regulated market in an EEA State when the cancellation takes effect.

06/08/2007
Past version of LR 5.2.6 before 06/08/2007

LR 5.2.7

LR 5.2.5 R (2) and LR 5.2.5A R will also not apply where an issuer of ordinary equity shares notifies a RIS;

(1) that the financial position of the issuer or its group is so precarious that, but for the proposal referred to in LR 5.2.7 R (2), there is no reasonable prospect that the issuer will avoid going into formal insolvency proceedings;
(2) that there is a proposal for a transaction, arrangement or other form of reconstruction of the issuer or its group which is necessary to ensure the survival of the issuer or its group and the continued listing would jeopardise the successful completion of the proposal;
(3) explaining;

(a) why the cancellation is in the best interests of those to whom the issuer or its directors have responsibilities (including the bodies of securities holders and creditors, taken as a whole); and
(b) why the approval of shareholders will not be sought prior to the cancellation of listing; and

(4) giving at least 20 business days notice of the intended cancellation.

Requirements for cancellation of other securities

LR 5.2.8

An issuer that wishes the FSA to cancel the listing of listed securities (other than ordinary equity shares with a primary listing or ordinary equity shares to which LR 5.2.5A R apply) must notify a RIS, giving at least 20 business days notice of the intended cancellation but is not required to obtain the approval of the holders of those securities contemplated in LR 5.2.5 R (2).

LR 5.2.9

Issuers with debt securities falling under LR 5.2.8 R must also notify, in accordance with the terms and conditions of the issue of those securities, holders of those securities or a representative of the holders, such as a trustee, of intended cancellation of those securities, but the prior approval of the holders of those securities in a general meeting need not be obtained.

01/07/2005

Cancellation in relation to takeover offers

LR 5.2.10

LR 5.2.5 R and LR 5.2.5A R do not apply to the cancellation of ordinary equity shares of an issuer when, in the case of a takeover offer:

(1) the offeror has by virtue of its shareholdings and acceptances of the offer, acquired or agreed to acquire issued share capital carrying 75% of the voting rights of the issuer; and
(2) the offeror has stated in the offer document or any subsequent circular sent to the security holders that a notice period of not less than 20 business days prior to cancellation will commence either on the offeror attaining the required 75% as described in LR 5.2.10 R (1) or on the first date of issue of compulsory acquisition notices under section 979 of the Companies Act 2006 (Right of offeror to buy out minority shareholder).

LR 5.2.11

In the circumstances of LR 5.2.10 R, the company must notify the security holders that the required 75% has been attained and that the notice period has commenced and of the anticipated date of cancellation or the explanatory letter or other material accompanying the section 979 notice must state that the notice period has commenced and the anticipated date of cancellation.

Cancellation as a result of schemes of arrangement etc

LR 5.2.12

LR 5.2.5 R, LR 5.2.5A R and LR 5.2.8 R do not apply to the cancellation of ordinary equity shares of an issuer as a result of:

(1) a takeover or restructuring of the issuer effected by a scheme of arrangement under Part 13 of the Companies Act 1985; or
(2) an administration or liquidation of the issuer pursuant to a court order under the Insolvency Act 1986.

LR 5.3

Requests to cancel or suspend

01/07/2005

Information to be included in request to suspend or cancel

LR 5.3.1

A request by an issuer for the listing of its securities to be suspended or cancelled must be in writing and must include:

(1) the issuer's name;
(2) details of the securities to which it relates and the RIEs on which they are traded;
(3) a clear explanation of the background and reasons for the request;
(4) the date on which the issuer requests the suspension or cancellation to take effect;
(5) for a suspension, the time the issuer wants the suspension to take effect;
(6) if relevant, a copy of any circular or announcement or other document upon which the issuer is relying;
(7) if relevant, evidence of any resolution required under LR 5.2.5 R;
(8) if being made by an agent on behalf of the issuer, confirmation that the agent has the issuer's authority to make it;
(9) the name and contact details of the person at the issuer (or, if appropriate, an agent) with whom the FSA should liaise in relation to the request;
(10) if the issuer is making a conditional request, a clear statement of the applicable conditions;
(11) a copy of any announcement the issuer proposes to notify to a RIS that it is relying on in making its request to suspend or cancel; and
(12) a copy of any announcement the issuer proposes to notify to a RIS announcing the suspension or cancellation.

01/07/2005

LR 5.3.2

The issuer must also include with a request to cancel the listing of its securities the following:

(1) if the cancellation is to take effect after the completion of the compulsory acquisition procedures under Chapter 3 of Part 28 of the Companies Act 2006, a copy of the notice sent to dissenting shareholders of the offeree together with written confirmation that there have been no objections made to the court within the prescribed period;
(2) for a cancellation referred to in LR 5.2.10 R an extract from, or a copy of, the offer document or relevant circular clearly showing the intention to cancel the offeree's listing and a copy of the announcement stating the date on which the cancellation was expected to take effect; and
(3) if a cancellation is to take place after a scheme of arrangement becomes effective under section 425 of the Companies Act 1985 and a new company is to be listed as a result of that scheme, either:

(a) a copy of the certificate from the Registrar of Companies that the scheme has become effective; or
(b) documents which demonstrate adequately that the scheme will become effective on a specified date in the future.

LR 5.3.3

Announcements referred to in LR 5.3.1 R (12) should be issued after the dealing notice issued on a RIS announcing the suspension or cancellation.

01/07/2005

Timing of suspension requests

LR 5.3.4

A written request by an issuer to have the listing of its securities suspended should be made as soon as practicable. Suspension requests received for the opening of the market should allow sufficient time for the FSA to deal with the request before trading starts.

01/07/2005

Timing of cancellation requests

LR 5.3.5

A written request by an issuer to have the listing of its securities cancelled must be made not less than 24 hours before the cancellation is expected to take effect.

01/07/2005

LR 5.3.6

Cancellations will only be specified to take effect when the market opens on a specified day. An issuer should therefore ensure that all accompanying information has been provided to the FSA well before the date on which the issuer wishes the cancellation to take effect and at the very latest by 3 p.m. on the business day before it is to take effect. If the information is received after 3:00 p.m. on the day before the issuer wishes the cancellation to take effect, it will normally be specified to take effect at the start of the business day following the next day.

01/07/2005

Withdrawing request

LR 5.3.7

(1) If an issuer requests the FSA to suspend or cancel the listing of its securities, it may withdraw its request at any time before the suspension or cancellation takes effect. The withdrawal request should initially be made by telephone and then confirmed in writing as soon as possible, with an explanation of the reasons for the withdrawal.
(2) Even if an issuer withdraws its request, the FSA may still suspend or cancel the listing of the securities if it considers it is necessary to do so.
(3) If an issuer has published either a statement or a circular that states that the issuer is, or intends, to seek a suspension or cancellation and the issuer no longer intends to do so, it should, as soon as possible, notify a RIS with a statement to that effect.

01/07/2005

LR 5.4

Restoring listing

01/07/2005

Revoking a cancellation of listing

LR 5.4.1

If an issuer has the listing of its securities cancelled, it may only have them readmitted to the official list by re-applying for their listing.

01/07/2005

Restoring a listing that is suspended

LR 5.4.2

The FSA may restore the listing of any securities that have been suspended if it considers that the smooth operation of the market is no longer jeopardised or if the suspension is no longer required to protect investors. The FSA may restore the listing even though the issuer does not request it.

01/07/2005

Requests to restore

LR 5.4.3

(1) An issuer that has the listing of any of its securities suspended may request the FSA to have them restored.
(2) The request should be made sufficiently in advance of the time and date the issuer wishes the securities to be restored.
(3) Requests received for when the market opens should allow sufficient time for the FSA to deal with the request.
(4) The request may be an oral request. The FSA may require documentary evidence that the events that lead to the suspension are no longer current (for example, financial reports have been published or an appropriate announcement has been made) to process the request.
(5) Even if restoration is required urgently, it will normally take up to 30 minutes to be effected.
(6) The FSA will issue a dealing notice on a RIS announcing the restoration.

01/07/2005

Refusal of request to restore

LR 5.4.4

The FSA will refuse a request to restore the listing of securities if it is not satisfied of the matters set out in LR 5.4.2 R.

01/07/2005

Withdrawal of a request to restore securities

LR 5.4.5

(1) If an issuer has requested the FSA to restore the listing of any securities, it may withdraw its request at any time while the securities are still suspended. The withdrawal request should initially be made by telephone and then confirmed in writing as soon as possible.
(2) Even if a request to restore has been withdrawn, the FSA may restore the listing of securities if it believes the circumstances justify it.

01/07/2005

Restoring listing of securitised derivatives

LR 5.4.6

(1) If an underlying instrument is restored, the securitised derivative's listing will normally be restored.
(2) For a securitised derivative relating to a basket of underlying instruments that has been suspended, the securitised derivative's listing may be restored by the FSA, irrespective of whether or not the underlying instrument has been restored, if:

(a) the issuer of the securitised derivative confirms to the FSA that despite the relevant underlying instrument(s) suspension a market in the securitised derivative will continue to be made; and
(b) the FSA is satisfied that restoring the securitised derivative is not inconsistent with either the protection of investors or the smooth operation of the market.

01/07/2005

LR 5.5

Miscellaneous

01/07/2005

Decision-making procedures for suspension, cancellation etc

LR 5.5.1

The decision-making procedures that the FSA will follow when it cancels, suspends or refuses a request to restore listing are set out in DEPP (Decision Procedure and Penalties).

Suspension, cancellation or restoration by overseas exchange or authority

LR 5.5.2

An issuer must inform the FSA if its listing has been suspended, cancelled or restored by an overseas exchange or overseas authority.

01/07/2005

LR 5.5.3

(1) The FSA will not automatically suspend, cancel or restore the listing of securities at the request of an overseas exchange or overseas authority (for example, if listing of a secondary listed issuer's securities are suspended, cancelled or restored on its home exchange).
(2) The FSA will not normally suspend the listing of securities where there is a trading halt for the security on its home exchange.
(3) If a secondary listed issuer requests a suspension, cancellation or restoration of the listing of its securities, after a suspension, cancellation or restoration on its home exchange, the issuer should send to the FSA written confirmation:

(a) that the suspension, cancellation or restoration of listing on its home exchange has become effective; or
(b) if it has not yet become effective, of the time and date it is proposed to become effective.

(4) If an overseas exchange or competent authority requests the FSA to suspend, cancel or restore the listing of securities, the FSA will, wherever practical, contact the issuer or its sponsor before it suspends, cancels or restores the listing. Therefore, issuers are encouraged to contact the FSA at the same time as they contact their home exchange.
(5) If the FSA is unable to contact the issuer or sponsor, it will suspend, cancel or restore the listing of the securities when it is satisfied that the listing of the relevant securities has been, or will be, suspended, cancelled or restored on their home exchange.

01/07/2005
Future version of LR 5.5.3 after 06/04/2010

Export chapter as

Legal Instruments that change this Chapter Suspending, cancelling and restoring listing

LR 6

Additional requirements for listing for equity securities

LR 6.1

Application

01/07/2005

LR 6.1.1

This chapter applies to an applicant for the admission of equity securities to primary listing.

01/07/2005
Future version of LR 6.1.1 after 06/04/2010

Applicant must satisfy requirements in this chapter

LR 6.1.2

An applicant for the admission of equity securities must satisfy the requirements in this chapter (in addition to those in LR 2).

01/07/2005
Future version of LR 6.1.2 after 06/04/2010

Accounts

LR 6.1.3

(1) A new applicant for the admission of shares or securities convertible into its own shares must have published or filed audited accounts that:

(a) cover at least three years; [Note: article 44 CARD]
(b) are the latest accounts for a period ended not more than six months before the date of the prospectus or listing particulars for the relevant securities;
(c) are consolidated accounts for the applicant and all its subsidiary undertakings;
(d) have been independently audited, in accordance with the auditing standards applicable in an EEA State or an equivalent standard; and
(e) have been reported on by the auditors without modification.

(2) A new applicant must:

(a) take all reasonable steps to ensure that its auditors are independent of it; and
(b) obtain written confirmation from its auditors that they comply with guidelines on independence issued by their national accountancy and auditing bodies.

01/07/2005
Future version of LR 6.1.3 after 06/04/2010

Nature and duration of business activities

LR 6.1.4

A new applicant for the admission of shares or securities convertible into its own shares must demonstrate that:

(1) at least 75% of the applicant's business is supported by a historic revenue earning record which covers the period for which accounts are required under LR 6.1.3R (1);
(2) it controls the majority of its assets and has done so for at least the period referred to in paragraph (1); and
(3) it will be carrying on an independent business as its main activity.

01/07/2005
Future version of LR 6.1.4 after 06/04/2010

LR 6.1.5

In determining what amounts to 75% of the applicant's business for the purposes of LR 6.1.4R (1), the FSA will take into account factors such as the assets, profitability and market capitalisation of the business.

01/07/2005

LR 6.1.6

LR 6.1.4 R is intended to enable prospective investors to make a reasonable assessment of what the future prospects of the applicant's business might be. Investors are then able to consider the company's historic revenue earning record in light of its particular competitive advantages, the outlook for the sector in which it operates and the general macro economic climate.

01/07/2005

LR 6.1.7

If an applicant's business has been in existence for the period referred to in LR 6.1.4 R but part or all of its business has one or more of the following characteristics it may not satisfy that rule:

(1) a business strategy that places significant emphasis on the development or marketing of products or services which have not formed a significant part of the issuer's historic revenue earning record; or
(2) the value of the business on admission will be determined, to a significant degree, by reference to future developments rather than past performance; or
(3) the relationship between the value of the business and its revenue or profit earning record is significantly different from those of similar companies in the same sector; or
(4) there is no record of consistent revenue, cash flow or profit growth throughout the historic revenue earning record; or
(5) the applicant's business has undergone a significant change in its scale of operations during the period of the historic revenue earning record; or
(6) it has significant levels of research and development expenditure or significant levels of capital expenditure.

01/07/2005

Mineral companies

LR 6.1.8

If a mineral company applies for the admission of its equity securities:

(1) LR 6.1.3R (1)(a) does not apply to the application; and
(2) LR 6.1.3R (1)(b) to (e) and (2) apply to the mineral company only to the extent that it has published accounts.

01/07/2005
Future version of LR 6.1.8 after 06/04/2010

LR 6.1.9

LR 6.1.4 R does not apply to a mineral company that applies for the admission of its equity securities.

01/07/2005
Future version of LR 6.1.9 after 06/04/2010

LR 6.1.10

(1) This rule applies to a mineral company that is a new applicant for the admission of its equity securities.
(2) If the mineral company does not hold controlling interests in a majority (by value) of the properties, fields, mines or other assets in which it has invested, it must demonstrate that it has a reasonable spread of direct interests in mineral resources and has rights to participate actively in their extraction, whether by voting or through other rights which give it influence in decisions over the timing and method of extraction of those resources.

01/07/2005
Future version of LR 6.1.10 after 06/04/2010

Scientific research based companies

LR 6.1.11

If a scientific research based company applies for the admission of its equity securities:

(1) LR 6.1.3R (1)(a) does not apply to the application; and
(2) LR 6.1.3R (1)(b) to (e) and (2) apply to the scientific research based company only to the extent that it has published accounts.

01/07/2005
Future version of LR 6.1.11 after 06/04/2010

LR 6.1.12

An applicant for the admission of equity securities of a scientific research based company does not need to satisfy LR 6.1.4 R but must:

(1) demonstrate its ability to attract funds from sophisticated investors;
(2) intend to raise at least £10 million pursuant to a marketing at the time of listing;
(3) have a capitalisation, before the marketing at the time of listing, of at least £20 million (based on the issue price and excluding the value of any securities which have been issued in the six months before listing);
(4) have as its primary reason for listing the raising of finance to bring identified products to a stage where they can generate significant revenues; and
(5) demonstrate that it has a three year record of operations in laboratory research and development including:

(a) details of patents granted or details of progress of patent applications; and
(b) the successful completion of, or the successful progression of, significant testing of the effectiveness of its products.

01/07/2005
Future version of LR 6.1.12 after 06/04/2010

Other cases where the FSAmay modify accounts and track record requirements

LR 6.1.13

The FSA may modify or dispense with LR 6.1.3R (1)(a) or LR 6.1.4 R if it is satisfied that it is desirable in the interests of investors and that investors have the necessary information available to arrive at an informed judgment about the applicant and the securities for which listing is sought.

[Note: article 44 CARD]

01/07/2005
Future version of LR 6.1.13 after 06/04/2010

LR 6.1.14

Before modifying or dispensing with LR 6.1.4 R, the FSA must also be satisfied that there is an overriding reason for the applicant seeking listing (rather than seeking admission to a market more suited to a company without a historic revenue earning record).

01/07/2005
Future version of LR 6.1.14 after 01/10/2012

LR 6.1.15

For the purposes of LR 6.1.14 G the FSA will take into account factors such as whether the applicant:

(1) is attracting significant funds from sophisticated investors;
(2) is undertaking a significant marketing of securities in connection with the admission and has demonstrated that having listed status is a significant factor in the ability to raise funds; and
(3) has demonstrated that it will have a significant market capitalisation on admission.

01/07/2005
Future version of LR 6.1.15 after 06/04/2010

Working capital

LR 6.1.16

An applicant for the admission of shares must satisfy the FSA that it and its subsidiary undertakings (if any) have sufficient working capital available for the group's requirements for at least the next 12 months from the date of publication of the prospectus or listing particulars (as the case may be) for the shares that are being admitted.

01/07/2005

LR 6.1.17

The FSA may dispense with the requirement under LR 6.1.16 R if an applicant already has equity securities listed, and the FSA is satisfied that the prospectus or listing particulars (as the case may be) contain satisfactory proposals for providing the additional working capital thought by the applicant to be necessary.

01/07/2005
Future version of LR 6.1.17 after 06/04/2010

LR 6.1.18

The FSA may dispense with the requirement under LR 6.1.16 R if the FSA is satisfied that:

(1) the applicant's business is entirely or substantially, that of banking, insurance or providing similar financial services;
(2) the applicant's solvency and capital adequacy is regulated by the FSA or is suitably regulated by another regulatory body; and
(3) the applicant is meeting its solvency and capital adequacy requirements and is expected to do so for the next 12 months without having to raise further capital.

01/07/2005

Shares in public hands

LR 6.1.19

(1) If an application is made for the admission of a class of shares, a sufficient number of shares of that class must, no later than the time of admission, be distributed to the public in one or more EEA States.
(2) For the purposes of paragraph (1), account may also be taken of holders in one or more states that are not EEA States, if the shares are listed in the state or states.
(3) For the purposes of paragraph (1), a sufficient number of shares will be taken to have been distributed to the public when 25% of the shares for which application for admission has been made are in public hands.
(4) For the purposes of paragraphs (1), (2) and (3), shares are not held in public hands if they are held, directly or indirectly by:

(a) a director of the applicant or of any of its subsidiary undertakings; or
(b) a person connected with a director of the applicant or of any of its subsidiary undertakings; or
(c) the trustees of any employees' share scheme or pension fund established for the benefit of any directors and employees of the applicant and its subsidiary undertakings; or
(d) any person who under any agreement has a right to nominate a person to the board of directors of the applicant; or
(e) any person or persons in the same group or persons acting in concert who have an interest in 5% or more of the shares of the relevant class.

(5) For the purposes of paragraph (3), treasury shares are not to be taken into consideration when calculating the number of shares of the class. [Note: article 48 CARD]

06/08/2007
Past version of LR 6.1.19 before 06/08/2007

LR 6.1.20

The FSA may modify LR 6.1.19 R to accept a percentage lower than 25% if it considers that the market will operate properly with a lower percentage in view of the large number of shares of the same class and the extent of their distribution to the public. For that purpose, the FSA may take into account shares of the same class that are held (even though they are not listed) in states that are not EEA States.

[Note: article 48 CARD]

06/08/2007
Past version of LR 6.1.20 before 06/08/2007

Shares of a non-EEA company

LR 6.1.21

The FSA will not admit shares of a company incorporated in a non-EEA State that are not listed either in its country of incorporation or in the country in which a majority of its shares are held, unless the FSA is satisfied that the absence of the listing is not due to the need to protect investors.

[Note: article 51 CARD]

01/07/2005

Warrants or options to subscribe

LR 6.1.22

(1) The total of all issued warrants to subscribe for equity shares or options to subscribe for equity shares must not exceed 20% of the issued equity share capital (excluding treasury shares) of the applicant as at the time of issue of the warrants or options.
(2) Rights under employees' share schemes are not included for the purpose of the 20% limit in paragraph (1).

01/07/2005

Settlement

LR 6.1.23

To be listed, securities must be eligible for electronic settlement.

01/07/2005
Future version of LR 6.1.23 after 06/04/2010

LR 6.1.24

In LR 6.1.23 R, electronic settlement includes settlement by a "relevant system" (as defined in the Uncertificated Securities Regulations 2001 (SI 2001/3755))

01/07/2005

Export chapter as

Legal Instruments that change this Chapter Additional requirements for listing for equity securities

LR 7

Listing Principles

LR 7.1

Application and purpose

01/07/2005

Application

LR 7.1.1

The Listing Principles apply to every listed company with a primary listing of equity securities in respect of all its obligations arising from the listing rules and the disclosure rules and transparency rules.

01/07/2005
Future version of LR 7.1.1 after 06/04/2010

Purpose

LR 7.1.2

The purpose of the Listing Principles is to ensure that listed companies pay due regard to the fundamental role they play in maintaining market confidence and ensuring fair and orderly markets.

01/07/2005

LR 7.1.3

The Listing Principles are designed to assist listed companies in identifying their obligations and responsibilities under the listing rules and the disclosure rules and transparency rules. The Listing Principles should be interpreted together with relevant rules and guidance which underpin the Listing Principles.

01/07/2005

LR 7.1.4

DEPP 6 (Penalties) and EG 7 set out guidance on the consequences of breaching the Listing Principles.

28/08/2007
Past version of LR 7.1.4 before 28/08/2007

LR 7.2

The Listing Principles

01/07/2005

LR 7.2.1

The Listing Principles are as follows:

Principle 1

A listed company must take reasonable steps to enable its directors to understand their responsibilities and obligations as directors.

Principle 2

A listed company must take reasonable steps to establish and maintain adequate procedures, systems and controls to enable it to comply with its obligations.

Principle 3

A listed company must act with integrity towards holders and potential holders of its listed equity securities.

Principle 4

A listed company must communicate information to holders and potential holders of its listed equity securities in such a way as to avoid the creation or continuation of a false market in such listed equity securities.

Principle 5

A listed company must ensure that it treats all holders of the same class of its listed equity securities that are in the same position equally in respect of the rights attaching to such listed equity securities.

Principle 6

A listed company must deal with the FSA in an open and co-operative manner.

01/07/2005
Future version of LR 7.2.1 after 06/04/2010

Guidance on Principle 2

LR 7.2.2

Principle 2 is intended to ensure that listed companies have adequate procedures, systems and controls to enable them to comply with their obligations under the listing rules and disclosure rules and transparency rules. In particular, the FSA considers that listed companies should place particular emphasis on ensuring that they have adequate procedures, systems and controls in relation to:

(1) identifying whether any obligations arise under LR 10 (Significant transactions) and LR 11 (Related party transactions); and
(2) the timely and accurate disclosure of information to the market.

01/07/2005

LR 7.2.3

Timely and accurate disclosure of information to the market is a key obligation of listed companies. For the purposes of Principle 2, a listed company with a primary listing of equity securities should have adequate systems and controls to be able to:

(1) ensure that it can properly identify information which requires disclosure under the listing rules or disclosure rules and transparency rules in a timely manner; and
(2) ensure that any information identified under paragraph (1) is properly considered by the directors and that such a consideration encompasses whether the information should be disclosed.

01/07/2005
Future version of LR 7.2.3 after 06/04/2010

Export chapter as

Legal Instruments that change this Chapter Listing Principles

LR 8

Sponsors

LR 8.1

Application

01/07/2005

Sponsors and applicants

LR 8.1.1

A sponsor and a person which is applying for approval as a sponsor must comply with:

(1) LR 8.3 to LR 8.4; and
(2) LR 8.6 to LR 8.7.

01/07/2005

Listed companies and applicants

LR 8.1.2

A company with, or applying for, a primary listing of its equity securities must comply with LR 8.2 (When a sponsor must be appointed or its assistance obtained) and LR 8.5 (Responsibilities of listed companies).

01/07/2005
Future version of LR 8.1.2 after 06/02/2009

LR 8.2

When a sponsor must be appointed or its assistance obtained

01/07/2005
Future version of LR 8.2 after 06/02/2009

When a sponsor must be appointed

LR 8.2.1

A company with, or applying for, a primary listing of its equity securities must appoint a sponsor on each occasion that it:

(1) makes an application for admission of equity securities which:

(a) requires the production of a prospectus or equivalent document; or
(b) is accompanied by a certificate of approval from another competent authority; or
(c) is accompanied by a summary document as required by PR 1.2.3R (8); or

(2) is required to produce a class 1 circular; or
(3) is producing a circular that proposes a reconstruction or a refinancing which does not constitute a class 1 transaction; or
(4) is producing a circular for the proposed purchase of own shares::

(a) which does not constitute a class 1 circular; and
(b) is required by LR 13.7.1R (2) to include a working capital statement; or

(5) is required to do so by the FSA because it appears to the FSA that there is, or there may be, a breach of the listing rules or the disclosure rules and transparency rules by the listed company.

When a listed company must obtain a sponsor's assistance

LR 8.2.2

If a listed company is proposing to enter into a transaction which due to its size or nature could amount to a class 1 transaction or a reverse takeover it must obtain the guidance of a sponsor to assess the application of LR 10.

01/07/2005
Future version of LR 8.2.2 after 06/02/2009

LR 8.2.3

If a listed company is proposing to enter into a transaction which is, or may be, a related party transaction it must obtain the guidance of a sponsor in order to assess the application of LR 11.

01/07/2005
Future version of LR 8.2.3 after 06/02/2009

LR 8.3

Role of a sponsor: general

01/07/2005

Responsibilities of a sponsor

LR 8.3.1

Where a sponsor has been appointed under LR 8.2 by a listed company or an applicant, a sponsor must:

(1) provide assurance to the FSA when required that the responsibilities of the listed company or applicant under the listing rules have been met; and
(2) guide the listed company or applicant in understanding and meeting its responsibilities under the listing rules and disclosure rules and transparency rules.

01/07/2005
Future version of LR 8.3.1 after 06/02/2009

LR 8.3.2

A sponsor will be the main point of contact with the FSA for any matter where the sponsor has been appointed by a listed company or applicant. The FSA expects to discuss all issues relating to a transaction and any draft or final document directly with the sponsor. However, in appropriate circumstances, the FSA will communicate directly with the listed company or applicant.

01/07/2005
Future version of LR 8.3.2 after 06/02/2009

Principles for sponsors: due care and skill

LR 8.3.3

A sponsor must provide:

(1) any service as set out in LR 8.4; or
(2) any assurance, guidance or advice to a listed company or applicant in relation to the application or interpretation of the listing rules and disclosure rules and transparency rules;

with due care and skill.

01/07/2005
Future version of LR 8.3.3 after 06/02/2009

Principles for sponsors: duty regarding directors of listed companies

LR 8.3.4

Where a sponsor gives any guidance or advice to a listed company or applicant in relation to the application or interpretation of the listing rules or disclosure rules and transparency rules, the sponsor must take reasonable steps to satisfy itself that the director or directors of the listed company understand the nature and extent of their responsibilities under the listing rules and disclosure rules and transparency rules.

01/07/2005
Future version of LR 8.3.4 after 06/02/2009

Principles for sponsors: relations with the FSA

LR 8.3.5

A sponsor must:

(1) deal with the FSA in an open and co-operative way;
(2) deal with all enquiries raised by the FSA promptly.; and
(3) disclose to the FSA in a timely manner any material information relating to the sponsor or to a listed company or applicant of which it has knowledge which addresses non-compliance with the listing rules or disclosure rules and transparency rules.

01/07/2005
Future version of LR 8.3.5 after 06/02/2009

Principles for sponsors: independence

LR 8.3.6

(1) A sponsor must be independent of the listed company or applicant where a sponsor provides any service, assurance, guidance or advice and in any event must not act if the sponsor or another company in the sponsor's group has:

(a) an interest in, or a holding that is referenced to, 30% or more of the equity shares of the listed company or applicant or any other company in that company's group; or
(b) a significant interest in the debt securities of a listed company or applicant or any other company in that company's group; or
(c) a business relationship with, or financial interest in the listed company or applicant or any other company in the listed company's group that would give the sponsor or the sponsor's group a material interest in the outcome of the transaction.

(2) Any interest that arises as a result of the sponsor's discretionary client holdings is not to be included in the determination of the threshold set out in LR 8.3.6R (1)(a).
(3) A sponsor will not be independent of a listed company or applicant if a director, partner or employee of the sponsor or another company in the sponsor's group:

(a) is involved in the provision of sponsor services; and
(b) has a material interest in the listed company or applicant or any other company in that company's group.

01/07/2005
Future version of LR 8.3.6 after 06/02/2008

LR 8.3.7

(1) A sponsor and the sponsor's group should have a sufficient degree of independence from the listed company or applicant and from the transaction so that the role of the sponsor can be discharged in a way that will not:

(a) affect the outcome of the transaction; or
(b) affect the nature of the advice given to the listed company or applicant; or
(c) be perceived to have affected either the outcome of the transaction or the nature of the advice given to the listed company or applicant.

(2) In cases where a company in, or an employee of, the sponsor's group has an interest or a relationship that may be perceived to cause a conflict it may be possible to demonstrate to the FSA that adequate separation exists in respect of the transaction.

01/07/2005
Future version of LR 8.3.7 after 06/02/2009

LR 8.4

Role of a sponsor: transactions

01/07/2005

Application for admission: new applicants

LR 8.4.1

LR 8.4.2 R to LR 8.4.6 R apply in relation to an application for admission of equity securities if an applicant does not have equity securities already listed and:

(1) the production of a prospectus or equivalent document is required; or
(2) the application is accompanied by a certificate of approval from another competent authority; or
(3) the application is accompanied by a summary document as required by PR 1.2.3R (8).

LR 8.4.2

A sponsor must not submit to the FSA an application on behalf of an applicant, in accordance with LR 3, unless it has come to a reasonable opinion, after having made due and careful enquiry, that:

(1) the applicant has satisfied all requirements of the listing rules relevant to an application for admission to listing;
(2) the applicant has satisfied all applicable requirements set out in the prospectus rules unless the home Member State of the applicant is not, or will not be, the United Kingdom;
(3) the directors of the applicant have established procedures which enable the applicant to comply with the listing rules and the disclosure rules and transparency rules on an ongoing basis;
(4) the directors of the applicant have established procedures which provide a reasonable basis for them to make proper judgments on an ongoing basis as to the financial position and prospects of the applicant and its group; and
(5) the directors of the applicant have a reasonable basis on which to make the working capital statement required by LR 6.1.16 R.

01/07/2005
Future version of LR 8.4.2 after 06/02/2009

New applicants: procedure

LR 8.4.3

A sponsor must:

(1) submit a completed Sponsor's Declaration on an Application for Listing to the FSA either:

(a) on the day the FSA is to consider the application for approval of the prospectus and prior to the time the prospectus is approved; or
(b) at a time agreed with the FSA, if the FSA is not approving the prospectus or if it is determining whether a document is an equivalent document;

(2) submit a completed a Shareholder Statement or a Pricing Statement, as applicable, to the FSA by 9 a.m. on the day the FSA is to consider the application;
(3) ensure that all matters known to it which, in its reasonable opinion, should be taken into account by the FSA in considering:

(a) the application for listing; and
(b) whether the admission of the equity shares would be detrimental to investors' interests;

have been disclosed with sufficient prominence in the prospectus or equivalent document or otherwise in writing to the FSA; and
(4) submit a letter to the FSA setting out how the applicant satisfies the criteria in LR 2 (Requirements for listing - all securities) and LR 6 (Additional requirements for listing for equity securities) no later than when the first draft of the prospectus is submitted (or, if the FSA is not approving a prospectus or if it is determining whether a document is an equivalent document, at a time to be agreed with the FSA).

[Note: the Sponsor's Declaration on an Application for Listing, the Shareholder Statement and the Pricing Statement forms can be found on the UKLA section of the FSA website.]

LR 8.4.4

Depending on the circumstances of the case, a sponsor providing services to an applicant on an application for admission to listing may have to confirm in writing to the FSA that the board of the applicant has allotted the equity securities.

[Note: see LR 3.3.4 R]

01/07/2005
Future version of LR 8.4.4 after 06/04/2010

New applicants: marketing

LR 8.4.5

A sponsor must:

(1) ensure that no equity shares are placed with connected clients of the sponsor or of any securities house or other intermediary assisting with the offer, unless placed with a market maker or fund manager for the purpose of its business as such;
(2) ensure that the results of any marketing, including the basis of allotment where applicable, are notified to a RIS before admission is expected to become effective; and
(3) ensure that if, after an offer for sale, offer for subscription, placing or intermediaries offer, any of the listed company's advisers or any intermediary becomes interested in 3% or more of any class of equity shares being marketed (calculated exclusive of treasury shares) the interest is notified to a RIS before admission is expected to become effective.

01/07/2005
Future version of LR 8.4.5 after 06/02/2009

LR 8.4.6

(1) For the purposes of LR 8.4.5R (3) an adviser or intermediary:

(a) will usually be regarded as having an interest if any market maker in the group of companies to which the adviser or intermediary belongs holds any equity shares of the applicant; and
(b) will not have an interest if the holding of the market maker arises solely from holdings of equity shares held on behalf of clients.

(2) In assessing the percentage size of the interest, the equity shares being marketed are to be treated as having already been issued.

01/07/2005
Future version of LR 8.4.6 after 06/02/2009

Application for admission: further issues

LR 8.4.7

LR 8.4.8 R to LR 8.4.10 G apply in relation to an application for admission of equity securities of an applicant that has equity securities already listed.

01/07/2005
Future version of LR 8.4.7 after 06/04/2010

LR 8.4.8

A sponsor must not submit to the FSA an application on behalf of an applicant, in accordance with LR 3 (Listing applications), unless it has come to a reasonable opinion, after having made due and careful enquiry, that:

(1) the applicant has satisfied all requirements of the listing rules relevant to an application for admission to listing;
(2) the applicant has satisfied all applicable requirements set out in the prospectus rules unless the home Member State of the applicant is not, or will not be, the United Kingdom; and
(3) the directors of the applicant have a reasonable basis on which to make the working capital statement required by LR 6.1.16 R or a qualified working capital statement in accordance with LR 6.1.17 G (as the case may be).

06/08/2007
Past version of LR 8.4.8 before 06/08/2007

Further issues: procedure

LR 8.4.9

A sponsor must:

(1) submit a completed Sponsor's Declaration on an Application for Listing to the FSA either:

(a) on the day the FSA is to consider the application for approval of the prospectus and prior to the time the prospectus is approved; or
(b) at a time agreed with the FSA if the FSA is not approving the prospectus or if it is determining whether a document is an equivalent document;

(2) submit a completed Shareholder Statement or a Pricing Statement, as applicable, to the FSA by 9 a.m. on the day the FSA is to consider the application; and
(3) ensure that all matters known to it which, in its reasonable opinion, should be taken into account by the FSA in considering the application for listing have been disclosed with sufficient prominence in the prospectus or equivalent document or otherwise in writing to the FSA.

Note: The Sponsor's Declaration on an Application for Listing, the Shareholder Statement and the Pricing Statement forms can be found on the UKLA section of the FSA's website.

LR 8.4.10

Depending on the circumstances of the case, a sponsor providing services to an applicant on an application for admission to listing may have to confirm in writing to the FSA the number of securities to be allotted or admitted.

[Note: see LR 3.3]

Class 1 circulars, refinancing and purchase of own equity shares

LR 8.4.11

LR 8.4.12 R to LR 8.4.13 R apply in relation to transactions involving a listed company of equity shares with a primary listing that:

(1) is required to produce a class 1 circular;
(2) is producing a circular that proposes a reconstruction or a re-financing which does not constitute a class 1 transaction; or
(3) is producing a circular for the proposed purchase of own shares;

(a) which does not constitute a class 1 circular; and
(b) is required by LR 13.7.1R (2) to include a working capital statement.

01/07/2005
Future version of LR 8.4.11 after 06/04/2010

LR 8.4.12

A sponsor must not submit to the FSA, on behalf of a listed company, an application for approval of a circular regarding a transaction set out in LR 8.4.11 R, unless the sponsor has come to a reasonable opinion, after having made due and careful enquiry, that:

(1) the listed company has satisfied all requirements of the listing rules relevant to the production of a class 1 circular or other circular;
(2) the transaction will not have an adverse impact on the listed company's ability to comply with the listing rules or the disclosure rules and transparency rules; and
(3) the directors of the listed company have a reasonable basis on which to make the working capital statement required by LR 9.5.12 R, LR 13.4.1 R or LR 13.7.1 R.

01/07/2005
Future version of LR 8.4.12 after 06/02/2009

Circulars: procedure

LR 8.4.13

A sponsor acting on a transaction falling within LR 8.4.11 R must:

(1) submit a completed Sponsor's Declaration for the Production of a Circular to the FSA on the day the circular is to be approved by the FSA and prior to the time the circular is approved;
(2) submit a completed Pricing Statement, if applicable, to the FSA by 9 a.m on the day the FSA is to consider the application; and
(3) ensure that all matters known to it which, in its reasonable opinion, should be taken into account by the FSA in considering the transaction have been disclosed with sufficient prominence in the documentation or otherwise in writing to the FSA.

Note: The Sponsor's Declaration for the Production of a Circular and the Pricing Statement forms can be found on the UKLA section of the FSA website.

01/07/2005

LR 8.5

Responsibilities of listed companies

01/07/2005

Notifications to FSA

LR 8.5.1

A listed company or applicant must ensure that the FSA is informed promptly of the name and contact details of a sponsor appointed in accordance with the listing rules (either by the listed company or applicant or by the sponsor itself).

LR 8.5.2

(1) A listed company or applicant must notify the FSA in writing immediately of the resignation or dismissal of any sponsor that it had appointed.
(2) In the case of a dismissal, the reasons for the dismissal must be included in the notification.
(3) The notification must be copied to the sponsor.

01/07/2005

Listed company appoints more than one sponsor

LR 8.5.3

Where a listed company or applicant appoints more than one sponsor, the company must:

(1) ensure that one of the sponsors that is appointed:

(a) takes primary responsibility for contact with the FSA in respect of the entire application or transaction; and
(b) appoints a suitably experienced employee, whose name appears on the list described in LR 8.6.15 R to liaise with the FSA; and

(2) inform the FSA, in writing, of the name and contact details of the sponsor taking responsibility under LR 8.5.3R (1)(a).

01/07/2005
Future version of LR 8.5.3 after 06/02/2009

LR 8.5.4

The appointment of more than one sponsor does not relieve any of the sponsors so appointed of their obligations under the listing rules.

01/07/2005

LR 8.5.5

Where a listed company or applicant appoints more than one sponsor in relation to a transaction, the FSA will consider all sponsors so appointed as jointly responsible for compliance with the listing rules.

01/07/2005

LR 8.6

Criteria for approval as a sponsor

01/07/2005

List of sponsors

LR 8.6.1

The FSA will maintain a list of sponsors on its website.

01/07/2005

Application for approval as a sponsor

LR 8.6.2

A person wanting to provide services as a sponsor, and to be included on the list of sponsors, must apply to the FSA for approval as a sponsor by submitting the following to the Sponsor Supervision Team at the FSA address:

(1) a completed Sponsor Firm Application Form;
(2) completed Sponsor Employee Application Forms; and
(3) the application fee set out in FEES 3.

[Note: The Sponsor's Firm Application Form and the Sponsor Employee Application Form can be found on the UKLA section of the FSA's website.]

LR 8.6.3

A person wanting to provide services as a sponsor and be included on the list of sponsors must also submit:

(1) all additional documents, explanations and information as required by the FSA; and
(2) verification of any information in such a manner as the FSA may specify.

01/07/2005
Future version of LR 8.6.3 after 06/02/2009

LR 8.6.4

When considering an application for approval as a sponsor the FSA may:

(1) carry out any enquiries and request any further information which it considers appropriate, including consulting other regulators;
(2) request that the applicant or its specified representative answer questions and explain any matter the FSA considers relevant to the application;
(3) take into account any information which it considers appropriate in relation to the application.
(4) [deleted]

[Note: The decision-making procedures that the FSA will follow when is considers whether to refuse an application for approval as a sponsor are set out in DEPP.]

Criteria for approval as a sponsor

LR 8.6.5

The FSA will approve a person as a sponsor only if it is satisfied that the person is:

(1) an authorised person or a member of a designated professional body;
(2) competent to perform the services set out in LR 8.2, LR 8.3 and LR 8.4; and
(3) has adequate systems and controls in place to ensure that it can carry out its role as a sponsor.

01/07/2005
Future version of LR 8.6.5 after 06/02/2009

LR 8.6.6

A sponsor must comply, at all times, with the criteria set out in LR 8.6.5 R.

01/07/2005

Competence of a sponsor

LR 8.6.7

A sponsor will be competent to perform the services set out in LR 8.2, LR 8.3 and LR 8.4 if it has a broad range of relevant experience and expertise in providing advice to listed companies and on the listing rules.

01/07/2005
Future version of LR 8.6.7 after 06/02/2009

LR 8.6.8

In assessing the competence of a sponsor, the FSA will have regard to:

(1) the number of suitably experienced employees retained by the sponsor, taking into account the size, number and nature of transactions undertaken and anticipated by the sponsor;
(2) the experience of those employees who are held out to the FSA as being suitably experienced employees; and
(3) the seniority of those suitably experienced employees.

01/07/2005
Future version of LR 8.6.8 after 06/02/2009

LR 8.6.9

(1) An employee will generally be accepted as suitably experienced if he or she has recent experience providing, in a competent manner, advice and services and fulfilling all responsibilities of a sponsor in relation to a transaction when a sponsor must be appointed.
(2) The FSA may consider, in addition to the experience described in paragraph (1), an employee's recent experience, acting in a senior capacity, providing advice and services in a competent manner on:

(a) transactions where a prospectus is required under the Prospectus Directive or an equivalent document is produced; and
(b) transactions which are similar in terms of size and complexity to those transactions set out in LR 8.2.1 R.

(3) Recent experience would normally be demonstrated if an employee has provided advice or services:

(a) at least three times in the preceding 36 months; and
(b) at least once in the preceding 12 months.

LR 8.6.10

A sponsor must have a sufficient number of suitably experienced employees to provide the services described in LR 8.2, LR 8.3 and LR 8.4 to a competent standard at all times.

01/07/2005

LR 8.6.11

The fewer the number of suitably experienced employees that a sponsor has, the greater the need that those employees do not rely on the same transactions to demonstrate their experience in advising on the listing rules, unless each of those employees has extensive experience in providing advice on the listing rules.

01/07/2005

Systems and controls: general

LR 8.6.12

A sponsor will generally be regarded as having adequate systems and controls if there are:

(1) clear and effective reporting lines;
(2) effective systems and controls for the adequate supervision of employees performing any of the services set out in LR 8.2, LR 8.3 and LR 8.4;
(3) effective systems and controls to ensure its compliance with all applicable listing rules when performing any of the services set out in LR 8.2, LR 8.3 or LR 8.4;
(4) effective systems and controls for identifying and managing conflicts of interest; and
(5) effective arrangements for making and retaining, for 6 years, adequate records of all matters relating to the provision of any services to a listed company or applicant.

01/07/2005
Future version of LR 8.6.12 after 06/02/2009

LR 8.6.13

The nature and extent of the systems and controls which a sponsor will need to maintain will depend upon a variety of factors including:

(1) the nature, scale and complexity of its business;
(2) the diversity of its operations;
(3) the volume and size of the transactions it undertakes; and
(4) the volume and size of the transactions it anticipates undertaking in the following year.

01/07/2005
Future version of LR 8.6.13 after 06/02/2009

LR 8.6.14

To enable it to comply with its obligation to maintain appropriate systems and controls, a sponsor should carry out an annual review of them.

01/07/2005

Systems and controls: employees

LR 8.6.15

A sponsor must keep an up to date list of all suitably experienced employees on whom it relies to demonstrate that it satisfies the criteria set out in LR 8.6.5 R.

01/07/2005

LR 8.6.16

A sponsor will generally be regarded as having effective systems and controls for the adequate supervision of employees if:

(1) all employees involved in the provision of any of the services described in LR 8.2, LR 8.3 and LR 8.4 are adequately supervised by a suitably experienced employee;
(2) all employees providing any of the services described in LR 8.2, LR 8.3 and LR 8.4 do not act beyond their proper authority;
(3) for each transaction which requires a sponsor as set out in LR 8.2, LR 8.3 and LR 8.4, an employee, whose name is on the list required by LR 8.6.15 R:

(a) is appointed by the sponsor to liaise with the FSA;
(b) reviews all the assurances provided to the FSA; and
(c) signs the Confirmation of Independence, the Sponsor's Declaration and any Listing Application forms that may be required; and

(4) for each transaction which requires a sponsor as set out in LR 8.2, employees who are sufficiently knowledgeable about the transaction are available to answer queries from the FSA on any business day between the hours of 8 a.m. and 6 p.m.

01/07/2005
Future version of LR 8.6.16 after 06/02/2009

LR 8.7

Supervision of sponsors

01/07/2005

LR 8.7.1

The FSA expects to have an open, co-operative and constructive relationship with a sponsor to enable it to have a broad picture of the sponsor's activities and its ability to satisfy the criteria for approval as a sponsor as set out in LR 8.6.5 R.

01/07/2005

Supervisory tools

LR 8.7.2

The FSA uses a variety of tools to monitor whether a sponsor:

(1) continues to satisfy the criteria for approval as a sponsor as set out in LR 8.6.5 R; and
(2) remains in compliance with all applicable listing rules.

01/07/2005

LR 8.7.3

FSA staff, after notifying the sponsor, may make supervisory visits to a sponsor on a periodic and an ad hoc basis.

01/07/2005

LR 8.7.4

The FSA will give reasonable notice to a sponsor of requests for meetings or requests for access to a sponsor's documents and records.

01/07/2005

Requests from other regulators

LR 8.7.5

The FSA, on behalf of other regulators, may request information from a sponsor or pass information on to other regulators to enable such regulators to discharge their functions.

01/07/2005

Fees

LR 8.7.6

A sponsor must pay the annual fee set out in FEES 4 in order to remain on the list of sponsors.

01/01/2006
Past version of LR 8.7.6 before 01/01/2006

Annual notifications

LR 8.7.7

A sponsor must provide to the FSA on an annual basis:

(1) written confirmation that it continues to satisfy the criteria for approval as a sponsor as set out in LR 8.6.5 R;
(2) an up to date list of employees that are suitably experienced on whom the sponsor can rely to demonstrate that it satisfies the criteria set out in LR 8.6.5 R;
(3) for each employee whose name is on the list maintained by the sponsor under LR 8.6.15 R, details of the transactions on which the employee has acted in the previous 12 months; and
(4) a list of transactions on which the sponsor was appointed as agent under LR 8.7.16 R, if applicable.

01/07/2005
Future version of LR 8.7.7 after 06/02/2009

General notifications

LR 8.7.8

A sponsor must notify the FSA in writing as soon as possible if:

(1) the sponsor ceases to satisfy the criteria for approval as a sponsor set out in LR 8.6.5 R; or
(2) the sponsor, or any of its employees whose names are on the list maintained by the sponsor under LR 8.6.15 R, are:

(a) convicted of any offence involving fraud, theft or other dishonesty; or
(b) the subject of a bankruptcy proceeding, a receiving order or an administration order; or

(3) any of its employees whose names are on the list maintained by the sponsor under LR 8.6.15 R are disqualified by a court from acting as a director of a company or from acting in a management capacity or conducting the affairs of any company; or
(4) the sponsor, or any of its employees whose names are on the list maintained by the sponsor under LR 8.6.15 R, are subject to any public criticism, regulatory intervention or disciplinary action:

(a) by the FSA; or
(b) by any designated professional body; or
(c) by any body that is comparable to the FSA or a designated professional body; or
(d) under any comparable legislation in any jurisdiction outside the United Kingdom; or

(5) the sponsor resigns or is dismissed by a listed company or applicant, giving details of any relevant facts or circumstances;
(6) the sponsor changes its name; or
(7) the list of employees that are suitably experienced to enable the sponsor to demonstrate that it satisfies the criteria set out in LR 8.6.5 R is amended, either because an employee is added to or is removed from the list; or
(8) a listed company or applicant denies the sponsor access to documents or information that have been the subject of a reasonable request by the sponsor; or
(9) a review carried out under LR 8.6.14 G reveals any material deficiencies in the sponsor's systems and controls; or
(10) there is a change of control of the sponsor, or the sponsor's group carries out any restructuring, which results in a re-organisation of the directors, partners or employees involved in providing services as a sponsor.

LR 8.7.9

General notifications may be made in the first instance by telephone, but must be confirmed promptly in writing.

01/07/2005

LR 8.7.10

Written notifications should be sent to the Sponsor Supervision Team at the FSA's address.

01/07/2005

Transaction notification rules: appointment of FSA liaison

LR 8.7.11

Each time a sponsor is appointed to act for a listed company or applicant as required by the listing rules it must inform the FSA as soon as possible of the name of the suitably experienced employee, whose name appears on the list described in LR 8.6.15 R8.7.8A, who has been appointed by the sponsor to liaise with the FSA.

06/08/2007
Past version of LR 8.7.11 before 06/08/2007

Transaction notification rules: sponsor independence

LR 8.7.12

(1) Each time a sponsor is appointed to act as a sponsor as required by the listing rules it must complete a Confirmation of Independence.
(2) The completed Confirmation of Independence must be submitted to the FSA at the same time as any documents in connection with a transaction are first submitted to the FSA.

[Note: The Confirmation of Independence form can be found on the UKLA section of the FSA's website.]

01/07/2005
Future version of LR 8.7.12 after 06/02/2009

LR 8.7.13

If, after submitting a Confirmation of Independence but prior to the day of approval of the prospectus or circular, a sponsor becomes aware that it is not independent of the listed company or applicant or the transaction, it must notify the FSA immediately. The details of the lack of independence must be confirmed to the FSA in writing.

01/07/2005
Future version of LR 8.7.13 after 06/02/2009

LR 8.7.14

On the day of approval of the prospectus or circular:

(1) a written confirmation that there has been no material change to the Confirmation of Independence; or
(2) an updated Confirmation of Independence reflecting any and all changes;

must be submitted to the FSA.

01/07/2005
Future version of LR 8.7.14 after 06/02/2009

LR 8.7.15

The FSA will notify the sponsor of any concerns it has in relation to the sponsor's independence as soon as possible following receipt of the Confirmation of Independence as set out in LR 8.7.12 R or LR 8.7.14 R or other notification regarding the sponsor's independence.

01/07/2005
Future version of LR 8.7.15 after 06/02/2009

Appointment of an agent

LR 8.7.16

A sponsor may not delegate any of its functions as such, except to another person on the list of sponsors.

01/07/2005
Future version of LR 8.7.16 after 06/02/2009

LR 8.7.17

(1) A sponsor that delegates any of its functions under LR 8.7.16 R is not relieved of its obligations under the listing rules.
(2) A sponsor that has been appointed as an agent by another sponsor under LR 8.7.16 R must comply with the requirements set out in LR 8.3.

01/07/2005
Future version of LR 8.7.17 after 06/02/2009

LR 8.7.18

A sponsor must notify the FSA in writing of:

(1) the identity of any delegate appointed under LR 8.7.16 R; and
(2) a detailed description of the scope of any delegation made under LR 8.7.16 R.

01/07/2005
Future version of LR 8.7.18 after 06/02/2009

Discipline of sponsors

LR 8.7.19

If the FSA considers that a sponsor has breached any provision of the listing rules and considers it appropriate to impose a sanction it will publish a statement censuring the sponsor.

01/07/2005

LR 8.7.20

EG sets out the FSA's policy on when and how it will use its disciplinary powers, including in relation to a sponsor.

Cancellation of a sponsor's approval at the sponsor's request

LR 8.7.21

A sponsor that intends to request the FSA to cancel its approval as a sponsor will need to comply with LR 8.7.22 R.

01/07/2005
Future version of LR 8.7.21 after 31/12/2012

LR 8.7.22

A request by a sponsor for its approval as a sponsor to be cancelled must be in writing and must include:

(1) the sponsor's name;
(2) a clear explanation of the background and reasons for the request;
(3) the date on which the sponsor requests the cancellation to take effect, after having taken into account LR 8.7.24G (2);
(4) a signed confirmation that the sponsor will not participate in any services described in LR 8.2 as of the date the request is submitted to the FSA; and
(5) the name and contact details of the person at the sponsor with whom the FSA should liaise with in relation to the request.

01/07/2005
Future version of LR 8.7.22 after 06/02/2008

LR 8.7.23

A sponsor may withdraw its request at any time before the cancellation takes effect. The withdrawal request should initially be made by telephone and then confirmed in writing as soon as possible, with an explanation of the reasons for the withdrawal.

01/07/2005

LR 8.7.24

(1) The decision-making procedures that the FSA will follow when it cancels a sponsor's approval at the sponsor's request are set out in DEPP.
(2) Under the statutory notice procedure set out in DEPP a request for cancellation of approval will take a minimum of 8 weeks to take effect.

Export chapter as

Legal Instruments that change this Chapter Sponsors

LR 9

Continuing obligations

LR 9.1

Preliminary

01/07/2005

Application: equity shares

LR 9.1.1

A company that has a primary listing of equity shares. must comply with all of the requirements of this chapter.

01/07/2005
Future version of LR 9.1.1 after 06/04/2010

Application: preference shares

LR 9.1.2

A company that has a primary listing of preference shares must comply with:

(1) LR 9.2.1 R to LR 9.2.6B R
(2) LR 9.2.11 R to LR 9.2.12 G;
(3) LR 9.2.14 R to LR 9.2.17 G;
(4) LR 9.3.1 R to LR 9.3.10 G;
(5) LR 9.5.1 R to LR 9.5.9 R;
(6) LR 9.6.1 R to LR 9.6.4 R;
(7) LR 9.6.6 R;
(8) LR 9.6.11 R;
(9) LR 9.6.19 R to LR 9.6.22 G;
(10) LR 9.7A; and
(11) LR 9.8, but not:

(a) LR 9.8.4R (3);
(b) [deleted]
(c) [deleted]
(d) LR 9.8.6R (5), (6) and (7)
(e) LR 9.8.8 R.

(12) [deleted]

06/08/2007
Past version of LR 9.1.2 before 06/08/2007

LR 9.1.2A

For the purposes of compliance with the transparency rules, the FSA considers that a listed company that issues preference shares should comply with DTR 4 (Periodic financial reporting), DTR 5 (Vote holder and issuer notification rules) and DTR 6 (Access to information) as if it were an issuer of debt securities as defined in the transparency rules.

20/01/2007

Application: securities convertible into equity shares

LR 9.1.3

A company that has a primary listing of securities convertible into equity shares must comply with:

(1) LR 9.2.1 R to LR 9.2.6B R ;
(2) LR 9.2.11 R;
(3) LR 9.2.13 G;
(4) [deleted]
(5) LR 9.5.11 R to LR 9.5.12 R;
(6) LR 9.5.15 R to LR 9.5.16 R;
(7) LR 9.6.1 R;
(8) LR 9.6.3 R;
(9) LR 9.6.4 R to LR 9.6.6 R;
(10) LR 9.6.19 R to LR 9.6.22 G; and
(11) LR 9.8 but not:

(a) LR 9.8.4R (3);
(b) [deleted]
(c) [deleted]
(d) LR 9.8.6R (6) and LR 9.8.6R (7); and
(e) LR 9.8.8 R.

20/01/2007
Past version of LR 9.1.3 before 20/01/2007

LR 9.1.4

A company that has a primary listing of securities convertible into equity shares must comply with LR 9.2.7 R to LR 9.2.10 R if the equity shares that the securities convert into are listed.

01/07/2005

LR 9.2

Requirements with continuing application

01/07/2005

Admission to trading

LR 9.2.1

A listed company must comply with LR 2.2.3 R at all times.

01/07/2005

LR 9.2.2

A listed company must inform the FSA in writing as soon as possible if it has:

(1) requested a RIE to admit or re-admit any of its listed equity securities or listed preference shares to trading; or
(2) requested a RIE to cancel or suspend trading of any of its listed equity securities or listed preference shares; or
(3) been informed by a RIE that trading of any of its listed equity securities or listed preference shares will be cancelled or suspended.

01/07/2005
Future version of LR 9.2.2 after 06/04/2010

Control of assets and independent business

LR 9.2.2A

A listed company that has shares listed, or securities convertible into its own shares listed, must comply with LR 6.1.4 R (2) and (3) at all times. This rule does not apply to a mineral company, a scientific research based company, venture capital trust or other investment entity.

06/08/2007
Future version of LR 9.2.2A after 06/03/2008

Settlement arrangements

LR 9.2.3

A listed company must comply with LR 6.1.23 R at all times.

01/07/2005

Compliance with the disclosure rules and transparency rules

LR 9.2.5

A listed company, whose securities are admitted to trading on a regulated market in the United Kingdom, should consider its obligations under DTR 2 (Disclosure and control of inside information by issuers).

01/07/2005
Future version of LR 9.2.5 after 06/04/2010

LR 9.2.6

A listed company that is not already required to comply with DTR 2 (Disclosure and control of inside information by issuers) must comply with DTR 2 as if it were an issuer for the purposes of the disclosure rules and transparency rules.

20/01/2007
Past version of LR 9.2.6 before 20/01/2007

LR 9.2.6A

A listed company, whose securities are admitted to trading on a regulated market, should consider its obligations under DTR 4 (Periodic financial reporting), DTR 5 (Vote holder and issuer notification rules) and DTR 6 (Access to information).

20/01/2007
Future version of LR 9.2.6A after 29/06/2008

LR 9.2.6B

A listed company that is not already required to comply with the transparency rules (or with corresponding requirements imposed by another EEA Member State) must comply with DTR 4, DTR 5 and DTR 6 as if it were an issuer for the purposes of the transparency rules.

20/01/2007

Compliance with the Model Code

LR 9.2.7

No dealings in any securities may be effected by or on behalf of a listed company or any other member in its group at a time when, under the provisions of the Model Code, a director of the company would be prohibited from dealing in its securities, unless such dealings are entered into:

(1) in the ordinary course of business by a securities dealing business; or
(2) on behalf of third parties by the company or any other member of its group.

01/07/2005

LR 9.2.8

A listed company must require every person discharging managerial responsibilities, including directors to comply with the Model Code and to take all proper and reasonable steps to secure their compliance.

06/08/2007
Past version of LR 9.2.8 before 06/08/2007

LR 9.2.9

A listed company may impose more rigorous dealing obligations than those required by the Model Code.

01/07/2005

LR 9.2.10

Where clearance is given to a person to deal in exceptional circumstances (pursuant to paragraph 9 of the Model Code) in a close period, the notification to a RIS required by DTR 3.1.4 R must also include a statement of the exceptional circumstances.

01/07/2005

Contact details

LR 9.2.11

A listed company must ensure that the FSA is provided with up to date contact details of at least one appropriate person nominated by it to act as the first point of contact with the FSA in relation to the company's compliance with the listing rules and the disclosure rules and transparency rules.

01/07/2005

LR 9.2.12

The contact person referred to in LR 9.2.11 R will be expected to be:

(1) knowledgeable about the listed company and the listing rules applicable to it;
(2) capable of ensuring that appropriate action is taken on a timely basis; and
(3) contactable on business days between the hours of 7 a.m. to 7 p.m.

01/07/2005

Sponsors

LR 9.2.13

A listed company should consider its notification obligations under LR 8.5.

01/07/2005

Shares in public hands

LR 9.2.15

A listed company must comply with LR 6.1.19 R at all times.

01/07/2005

LR 9.2.16

A listed company that no longer complies with LR 6.1.19 R must notify the FSA as soon as possible of its non-compliance.

01/07/2005

LR 9.2.17

A listed company should consider LR 5.2.2 G (2) in relation to its compliance with LR 6.1.19 R.

01/07/2005

Publication of unaudited financial information

LR 9.2.18

(1) This rule applies to a listed company that has published:

(a) any unaudited financial information in a class 1 circular or a prospectus; or
(b) any profit forecast or profit estimate.

(2) The first time a listed company publishes financial information as required by LR 9.7 to LR 9.9 after the publication of the unaudited financial information, profit forecast or profit estimate, it must:

(a) reproduce that financial information, profit forecast or profit estimate in its next annual report and accounts;
(b) produce and disclose in the annual report and accounts the actual figures for the same period covered by the information reproduced under paragraph (2)(a); and
(c) provide an explanation of the difference, if there is a difference of 10% or more between the figures required by paragraph (2)(b) and those reproduced under paragraph (2)(a).

01/07/2005
Future version of LR 9.2.18 after 01/10/2012

LR 9.2.19

LR 9.2.18 R does not apply to:

(1) pro forma financial information prepared in accordance with Annex 1 and Annex 2 of the PD Regulation; or
(2) any preliminary statements of annual results or half-yearly or quarterly reports that are reproduced with the unaudited financial information.

01/07/2005

LR 9.3

Continuing obligations - holders

01/07/2005
Future version of LR 9.3 after 06/04/2010

Proxy forms

LR 9.3.6

A listed company must ensure that, in addition to its obligations under the Companies Act 2006, a proxy form:

(1) [deleted]
(2) provides for at least three-way voting on all resolutions intended to be proposed (except that it is not necessary to provide proxy forms with three-way voting on procedural resolutions); and
(3) [deleted]
(4) states that if it is returned without an indication as to how the proxy shall vote on any particular matter, the proxy will exercise his discretion as to whether, and if so how, he votes.

06/08/2007
Past version of LR 9.3.6 before 06/08/2007

Proxy forms for re-election of retiring directors

LR 9.3.7

If the resolutions to be proposed include the re-election of retiring directors and the number of retiring directors standing for re-election exceeds five, the proxy form may give shareholders the opportunity to vote for or against (or abstain from voting on) the re-election of the retiring directors as a whole but must also allow votes to be cast for or against (or for shareholders to abstain from voting on) the re-election of the retiring directors individually.

06/08/2007
Past version of LR 9.3.7 before 06/08/2007

Sanctions

LR 9.3.9

Where a listed company has taken a power in its constitution to impose sanctions on a shareholder who is in default in complying with a notice served under section 793 of the Companies Act 2006 (Notice by company requiring information about interests in its shares):

(1) sanctions may not take effect earlier than 14 days after service of the notice;
(2) for a shareholding of less than 0.25% of the shares of a particular class (calculated exclusive of treasury shares), the only sanction the constitution may provide for is a prohibition against attending meetings and voting;
(3) for a shareholding of 0.25% or more of the shares of a particular class (calculated exclusive of treasury shares), the constitution may provide:

(a) for a prohibition against attending meetings and voting;
(b) for the withholding of the payment of dividends (including shares issued in lieu of dividend) on the shares concerned; and
(c) for the placing of restrictions on the transfer of shares, provided that restrictions on transfer do not apply to a sale to a genuine unconnected third party (such as through a RIE or an overseas exchange or by the acceptance of a takeover offer); and

(4) any sanctions imposed in accordance with paragraph (2) or (3) above must cease to apply after a specified period of not more than seven days after the earlier of:

(a) receipt by the issuer of notice that the shareholding has been sold to an unconnected third party through a RIE or an overseas exchange or by the acceptance of a takeover offer; and
(b) due compliance, to the satisfaction of the issuer, with the notice under section 793.

06/04/2007
Past version of LR 9.3.9 before 06/04/2007

LR 9.3.10

An overseas company with a primary listing is not required to comply with LR 9.3.9 R.

01/07/2005
Future version of LR 9.3.10 after 06/04/2010

Pre-emption rights

LR 9.3.11

A listed company proposing to issue equity shares for cash or to sell treasury shares that are equity securities for cash must first offer those securities in proportion to their existing holdings to:

(1) existing holders of that class of equity shares (other than the listed company itself by virtue of it holding treasury shares); and
(2) holders of other equity shares of the listed company who are entitled to be offered them.

01/07/2005
Future version of LR 9.3.11 after 06/04/2010

LR 9.3.12

LR 9.3.11 R does not apply if:

(1) a general disapplication of statutory pre-emption rights has been authorised by shareholders in accordance with section 95 of the Companies Act 1985 (Disapplication of pre-emption rights) and the issue of equity securities or sale of treasury shares that are equity shares by the listed company is within the terms of the authority; or
(2) the listed company is undertaking a rights issue or open offer and the disapplication of pre-emption rights is with respect to:

(a) equity shares representing fractional entitlements; or
(b) equity shares which the company considers necessary or expedient to exclude from the offer on account of the laws or regulatory requirements of another territory; or

(3) the listed company is selling treasury shares for cash to an employee share scheme; or
(4) the company is an overseas company with a primary listing.

LR 9.4

Documents requiring prior approval

01/07/2005

Employees share schemes and long-term incentive plans

LR 9.4.1

(1) This rule applies to the following schemes of a listed company incorporated in the United Kingdom and of any of its major subsidiary undertaking (even if that major subsidiary undertaking is incorporated or operates overseas):

(a) an employees' share scheme if the scheme involves or may involve the issue of new shares or the transfer of treasury shares; and
(b) a long-term incentive scheme in which one or more directors of the listed company is eligible to participate.

(2) The listed company must ensure that the employees' share scheme or long-term incentive scheme is approved by an ordinary resolution of the shareholders of the listed company in general meeting before it is adopted.

01/07/2005

LR 9.4.2

LR 9.4.1 R does not apply to the following long-term incentive schemes:

(1) an arrangement where participation is offered on similar terms to all or substantially all employees of the listed company or any of its subsidiary undertakings whose employees are eligible to participate in the arrangement (provided that all or substantially all employees are not directors of the listed company); and
(2) an arrangement where the only participant is a director of the listed company (or an individual whose appointment as a director of the listed company is being contemplated) and the arrangement is established specifically to facilitate, in unusual circumstances, the recruitment or retention of the relevant individual.

01/07/2005

LR 9.4.3

For a scheme referred to in LR 9.4.2R (2), the following information must be disclosed in the first annual report published by the listed company after the date on which the relevant individual becomes eligible to participate in the arrangement:

(1) all of the information prescribed in LR 13.8.11 R;
(2) the name of the sole participant;
(3) the date on which the participant first became eligible to participate in the arrangement;
(4) an explanation of why the circumstances in which the arrangement was established were unusual;
(5) the conditions to be satisfied under the terms of the arrangement; and
(6) the maximum award(s) under the terms of the arrangement or, if there is no maximum, the basis on which awards will be determined.

01/07/2005

Discounted option arrangements

LR 9.4.4

(1) This rule applies to the grant to a director or employee of a listed company or of any subsidiary undertaking of a listed company of an option to subscribe, warrant to subscribe or other similar right to subscribe for shares in the capital of the listed company or any of its subsidiary undertakings.
(2) A listed company must not, without the prior approval by an ordinary resolution of the shareholders of the listed company in a general meeting, grant the option, warrant or other right if the price per share payable on the exercise of the option, warrant or other similar right to subscribe is less than whichever of the following is used to calculate the exercise price:

(a) the market value of the share on the date when the exercise price is determined; or
(b) the market value of the share on the business day before that date; or
(c) the average of the market values for a number of dealing days within a period not exceeding 30 days immediately before that date.

01/07/2005

LR 9.4.5

LR 9.4.4 R does not apply to the grant of an option to subscribe, warrant to subscribe or other similar right to subscribe for shares in the capital of a listed company or any of its subsidiary undertakings:

(1) under an employees' share scheme if participation is offered on similar terms to all or substantially all employees of the listed company or any of its subsidiary undertakings whose employees are entitled to participate in the scheme; or
(2) following a take-over or reconstruction, in replacement for and on comparable terms with options to subscribe, warrants to subscribe or other similar rights to subscribe held immediately before the take-over or reconstruction for shares in either a company of which the listed company thereby obtains control or in any of that company's subsidiary undertakings.

01/07/2005

LR 9.5

Transactions

01/07/2005

Rights issue

LR 9.5.1

For a placing of rights arising from a rights issue before the official start of dealings, a listed company must ensure that:

(1) the placing relates to at least 25% of the maximum number of securities offered;
(2) the placees are committed to take up whatever is placed with them;
(3) the price paid by the placees does not exceed the price at which the securities the subject of the rights issue are offered by more than one half of the calculated premium over that offer price (that premium being the difference between the offer price and the theoretical ex-rights price); and
(4) the securities the subject of the rights issue are of the same class as securities already listed.

01/07/2005
Future version of LR 9.5.1 after 06/04/2010

LR 9.5.2

The FSA may modify LR 9.5.1R (1) to allow the placing to relate to less than 25% if it is satisfied that requiring at least 25% would be detrimental to the success of the issue.

01/07/2005

LR 9.5.3

In a rights issue, the FSA may list the securities at the same time as the securities are admitted to trading in nil paid form. On the securities being paid up and the allotment becoming unconditional, the listing will continue without any need for a further application to list fully paid securities.

01/07/2005
Future version of LR 9.5.3 after 06/04/2010

LR 9.5.4

If existing security holders do not take up their rights to subscribe in a rights issue:

(1) the listed company must ensure that the securities to which the offer relates are offered for subscription or purchase on terms that any premium obtained over the subscription or purchase price (net of expenses) is to be for the account of the holders, except that if the proceeds for an existing holder do not exceed 5.00, the proceeds may be retained for the company's benefit; and
(2) the securities may be allotted or sold to underwriters, if on the expiry of the subscription period no premium (net of expenses) has been obtained.

01/07/2005
Future version of LR 9.5.4 after 06/04/2010

LR 9.5.5

A listed company must ensure that for a rights issue the following are notified to a RIS as soon as possible:

(1) the issue price and principal terms of the issue; and
(2) the results of the issue and, if any rights not taken up are sold, details of the sale, including the date and price per share.

01/07/2005

LR 9.5.6

A listed company must ensure that the offer relating to a rights issue remains open for acceptance for at least 21 days.

01/07/2005
Future version of LR 9.5.6 after 10/02/2009

Open offers

LR 9.5.7

A listed company must ensure that the timetable for an open offer is approved by the RIE on which its securities are traded.

01/07/2005
Future version of LR 9.5.7 after 06/04/2010

LR 9.5.8

A listed company must ensure that in relation to communicating information on an open offer:

(1) if the offer is subject to shareholder approval in general meeting the announcement must state that this is the case; and
(2) the circular dealing with the offer must not contain any statement that might be taken to imply that the offer gives the same entitlements as a rights issue.

01/07/2005
Future version of LR 9.5.8 after 06/06/2011

Vendor consideration placing

LR 9.5.9

A listed company must ensure that in a vendor consideration placing all vendors have an equal opportunity to participate in the placing.

01/07/2005

Discounts not to exceed 10%

LR 9.5.10

(1) If a listed company makes an open offer, placing, vendor consideration placing, offer for subscription of equity shares or an issue out of treasury (other than in respect of an employees' share scheme) of a class already listed, the price must not be at a discount of more than 10% to the middle market price of those shares at the time of announcing the terms of the offer or at the time of agreeing the placing (as the case may be).
(2) In paragraph (1), the middle market price of equity shares means the middle market quotation for those equity shares as derived from the daily official list of the London Stock Exchange or any other publication of an RIE showing quotations for listed securities for the relevant date.
(3) Paragraph (1) does not apply to an offer or placing at a discount of more than 10% if:

(a) the terms of the offer or placing at that discount have been specifically approved by the issuer's shareholders; or
(b) it is an issue of shares for cash or the sale of treasury shares for cash under a pre-existing general authority to disapply section 89 of the Companies Act 1985 (Offers to shareholders to be on a pre-emptive basis).

(4) The listed company must notify a RIS as soon as possible after it has agreed the terms of the offer or placing.

Offer for sale or subscription

LR 9.5.11

A listed company must ensure that for an offer for sale or an offer for subscription of equity securities:

(1) letters of allotment or acceptance are all issued simultaneously and numbered serially (and, where appropriate, split and certified by the listed company's registrars);
(2) if the securities may be held in uncertificated form, there is equal treatment of those who elect to hold the securities in certificated form and those who elect to hold them in uncertificated form;
(3) letters of regret are posted at the same time or not later than three business days after the letters of allotment or acceptance; and
(4) if a letter of regret is not posted at the same time as letters of allotment or acceptance, a notice to that effect is inserted in a national newspaper, to appear on the morning after the letters of allotment or acceptance are posted.

01/07/2005
Future version of LR 9.5.11 after 06/04/2010

Reconstruction or refinancing

LR 9.5.12

(1) If a listed company produces a circular containing proposals to be put to shareholders in a general meeting relating to a reconstruction or a re-financing, the circular must be produced in accordance with LR 13.3 and must include a working capital statement.
(2) The requirement for a working capital statement set out in paragraph (1) does not apply to a closed-ended investment fund.
(3) The working capital statement required by paragraph (1) must be prepared in accordance with item 3.1 of Annex 3 of the PD Regulation and on the basis that the reconstruction or the re-financing has taken place.

28/09/2007
Past version of LR 9.5.12 before 28/09/2007

Fractional entitlements

LR 9.5.13

If, for an issue of shares (other than an issue in lieu of dividend), a shareholders entitlement includes a fraction of a security, a listed company must ensure that the fraction is sold for the benefit of the holder except that if its value (net of expenses) does not exceed 5.00 it may be sold for the company's benefit. Sales of fractions may be made before listing is granted.

01/07/2005
Future version of LR 9.5.13 after 06/04/2010

Further issues

LR 9.5.14

When shares of the same class as shares that are listed are allotted, an application for admission to listing of such shares must be made as soon as possible and in any event within one month of the allotment.

[Note: Article 64 CARD]

01/07/2005

Temporary documents of title (including renounceable documents)

LR 9.5.15

A listed company must ensure that any temporary document of title (other than one issued in global form) for an equity security:

(1) is serially numbered;
(2) states where applicable:

(a) the name and address of the first holder and names of joint holders (if any);
(b) for a fixed income security, the amount of the next payment of interest or dividend;
(c) the pro rata entitlement;
(d) the last date on which transfers were or will be accepted for registration for participation in the issue;
(e) how the securities rank for dividend or interest;
(f) the nature of the document of title and proposed date of issue;
(g) how fractions (if any) are to be treated; and
(h) for a rights issue, the time, being not less than 21 days, in which the offer may be accepted, and how securities not taken up will be dealt with; and

(3) if renounceable:

(a) states in a heading that the document is of value and negotiable;
(b) advises holders of securities who are in any doubt as to what action to take to consult appropriate independent advisers immediately;
(c) states that where all of the securities have been sold by the addressee (other than ex rights or ex capitalisation), the document should be passed to the person through whom the sale was effected for transmission to the purchaser;
(d) has the form of renunciation and the registration instructions printed on the back of, or attached to, the document;
(e) includes provision for splitting (without fee) and for split documents to be certified by an official of the company or authorised agent;
(f) provides for the last day for renunciation to be the second business day after the last day for splitting; and
(g) if at the same time as an allotment is made of shares issued for cash, shares of the same class are also allotted credited as fully paid to vendors or others, provides for the period for renunciation to be the same as, but no longer than, that provided for in the case of shares issued for cash.

01/07/2005
Future version of LR 9.5.15 after 10/02/2009

Definitive documents of title

LR 9.5.16

A listed company must ensure that any definitive document of title for an equity security (other than a bearer security) includes the following matters on its face (or on the reverse in the case of paragraphs (5) and (7)):

(1) the authority under which the listed company is constituted and the country of incorporation and registered number (if any);
(2) the number or amount of securities the certificate represents and, if applicable, the number and denomination of units (in the top right-hand corner);
(3) a footnote stating that no transfer of the security or any portion of it represented by the certificate can be registered without production of the certificate;
(4) if applicable, the minimum amount and multiples thereof in which the security is transferable;
(5) the date of the certificate;
(6) for a fixed income security, the interest payable and the interest payment dates and on the reverse (with reference shown on the face) an easily legible summary of the rights as to redemption or repayment and (where applicable) conversion; and
(7) for shares with preferential rights, on the face (or, if not practicable, on the reverse), a statement of the conditions thereof as to capital, dividends and (where applicable) conversion.

01/07/2005
Future version of LR 9.5.16 after 06/04/2010

LR 9.6

Notifications

01/07/2005

Copies of documents

LR 9.6.1

A listed company must forward to the FSA for publication through the document viewing facility, two copies of all circulars, notices, reports or other documents to which the listing rules apply at the same time as they are issued.

01/07/2005

LR 9.6.2

A listed company must forward to the FSA, for publication through the document viewing facility, two copies of all resolutions passed by the listed company other than resolutions concerning ordinary business at an annual general meeting as soon as possible after the relevant general meeting.

01/07/2005

LR 9.6.3

(1) A listed company must notify a RIS as soon as possible when a document has been forwarded to the FSA under LR 9.6.1 R or LR 9.6.2 R unless the full text of the document is provided to the RIS.
(2) A notification made under paragraph (1) must set out where copies of the relevant document can be obtained.

01/07/2005

Notifications relating to capital

LR 9.6.4

A listed company must notify a RIS as soon as possible (unless otherwise indicated in this rule) of the following information relating to its capital:

(1) any proposed change in its capital structure including the structure of its listed debt securities, save that an announcement of a new issue may be delayed while marketing or underwriting is in progress;
(2) [deleted]
(3) any redemption of listed shares including details of the number of shares redeemed and the number of shares of that class outstanding following the redemption;
(4) any extension of time granted for the currency of temporary documents of title; and
(5) [deleted]
(6) (except in relation to a block listing of securities) the results of any new issue of equity securities or preference shares or of a public offering of existing shares or other equity securities.

LR 9.6.6

Where the securities are subject to an underwriting agreement a listed company may, at its discretion and subject to DTR 2 (Disclosure and control of inside information by issuers), delay notifying a RIS as required by LR 9.6.4R (6) for up to two business days until the obligation by the underwriter to take or procure others to take securities is finally determined or lapses. In the case of an issue or offer of securities which is not underwritten, notification of the result must be made as soon as it is known.

20/01/2007
Past version of LR 9.6.6 before 20/01/2007

Notification of board changes and directors' details

LR 9.6.11

A listed company must notify a RIS of any change to the board including:

(1) the appointment of a new director stating the appointees name and whether the position is executive, non-executive or chairman and the nature of any specific function or responsibility of the position;
(2) the resignation, removal or retirement of a director (unless the director retires by rotation and is re-appointed at a general meeting of the listed company's shareholders);
(3) important changes to the role, functions or responsibilities of a director; and
(4) the effective date of the change if it is not with immediate effect;

as soon as possible and in any event by the end of the business day following the decision or receipt of notice about the change by the company.

01/07/2005

LR 9.6.12

If the effective date of the board change is not yet known, the notification required by LR 9.6.11 R should state this fact and the listed company should notify a RIS as soon as the effective date has been decided.

01/07/2005

LR 9.6.13

A listed company must notify a RIS of the following information in respect of any new director appointed to the board as soon as possible following the decision to appoint the director and in any event within five business days of the decision:

(1) details of all directorships held by the director in any other publicly quoted company at any time in the previous five years, indicating whether or not he is still a director;
(2) any unspent convictions in relation to indictable offences;
(3) details of any receiverships, compulsory liquidations, creditors voluntary liquidations, administrations, company voluntary arrangements or any composition or arrangement with its creditors generally or any class of its creditors of any company where the director was an executive director at the time of, or within the 12 months preceding, such events;
(4) details of any compulsory liquidations, administrations or partnership voluntary arrangements of any partnerships where the director was a partner at the time of, or within the 12 months preceding, such events;
(5) details of receiverships of any asset of such person or of a partnership of which the director was a partner at the time of, or within the 12 months preceding, such event; and
(6) details of any public criticisms of the director by statutory or regulatory authorities (including designated professional bodies) and whether the director has ever been disqualified by a court from acting as a director of a company or from acting in the management or conduct of the affairs of any company.

01/07/2005

LR 9.6.14

A listed company must, in respect of any current director, notify a RIS as soon as possible of:

(1) any changes in the information set out in LR 9.6.13R (2) to LR 9.6.13R (6); and
(2) any new directorships held by the director in any other publicly quoted company.

06/08/2007
Past version of LR 9.6.14 before 06/08/2007

LR 9.6.15

If no information is required to be disclosed pursuant to LR 9.6.13 R, the notification required by LR 9.6.13 R should state this fact.

01/07/2005

Notification of lock-up arrangements

LR 9.6.16

A listed company must notify a RIS as soon as possible of information relating to the disposal of equity shares under an exemption allowed in the lock-up arrangements disclosed in accordance with the PD Regulation.

01/07/2005

LR 9.6.17

A listed company must notify a RIS as soon as possible of the details of any variation in the lock-up arrangements disclosed in accordance with the PD Regulation or any subsequent announcement.

01/07/2005

Notification of shareholder resolutions

LR 9.6.18

A listed company must notify a RIS as soon as possible after a general meeting of all resolutions passed by the company other than resolutions concerning ordinary business passed at an annual general meeting.

01/07/2005

Change of name

LR 9.6.19

A listed company which changes its name must, as soon as possible:

(1) notify a RIS of the change, stating the date on which it has taken effect;
(2) inform the FSA in writing of the change; and
(3) where the listed company is incorporated in the United Kingdom, send the FSA a copy of the revised certificate of incorporation issued by the Registrar of Companies.

01/07/2005

Change of accounting date

LR 9.6.20

A listed company must notify a RIS as soon as possible of:

(1) any change in its accounting reference date; and
(2) the new accounting reference date.

01/07/2005

LR 9.6.21

A listed company must prepare and publish a second interim report in accordance with DTR 4.2 if the effect of the change in the accounting reference date is to extend the accounting period to more than 14 months.

06/10/2007
Past version of LR 9.6.21 before 06/10/2007

LR 9.6.22

The second interim report must be prepared and published in respect of either:

(1) the period up to the old accounting reference date; or
(2) the period up to a date not more than six months prior to the new accounting reference date.

01/07/2005

LR 9.7A

Preliminary statement of annual results, statement of dividends and half-yearly reports

20/01/2007

Preliminary statement of annual results

LR 9.7A.1

If a listed company prepares a preliminary statement of annual results:

(1) the statement must be published as soon as possible after it has been approved by the board;
(2) the statement must be agreed with the company's auditors prior to publication;
(3) the statement must show the figures in the form of a table, including the items required for a half-yearly report, consistent with the presentation to be adopted in the annual accounts for that financial year;
(4) the statement must give details of the nature of any likely modification that may be contained in the auditors report required to be included with the annual financial report; and
(5) the statement must include any significant additional information necessary for the purpose of assessing the results being announced.

20/01/2007
Future version of LR 9.7A.1 after 01/10/2012

Statement of dividends

LR 9.7A.2

A listed company must notify a RIS as soon as possible after the board has approved any decision to pay or make any dividend or other distribution on listed equity or to withhold any dividend or interest payment on listed securities giving details of:

(1) the exact net amount payable per share;
(2) the payment date;
(3) the record date (where applicable); and
(4) any foreign income dividend election, together with any income tax treated as paid at the lower rate and not repayable.

20/01/2007

Omission of information

LR 9.7A.3

The FSA may authorise the omission of information required by LR 9.7A.1 R or LR 9.7A.2 R if it considers that disclosure of such information would be contrary to the public interest or seriously detrimental to the listed company, provided that such omission would not be likely to mislead the public with regard to facts and circumstances, knowledge of which is essential for the assessment of the shares.

20/01/2007

LR 9.8

Annual financial report

20/01/2007
Past version of LR 9.8 before 20/01/2007

Information to be included in annual report and accounts

LR 9.8.4

In addition to the requirements set out in DTR 4.1 a listed company must include in its annual financial report, where applicable, the following:

(1) a statement of the amount of interest capitalised by the group during the period under review with an indication of the amount and treatment of any related tax relief;
(2) any information required by LR 9.2.18 R (Publication of unaudited financial information);
(3) details of any small related party transaction as required by LR 11.1.10R (2)(c);
(4) details of any long-term incentive schemes as required by LR 9.4.3 R;
(5) details of any arrangements under which a director of the company has waived or agreed to waive any emoluments from the company or any subsidiary undertaking;
(6) where a director has agreed to waive future emoluments, details of such waiver together with those relating to emoluments which were waived during the period under review;
(7) in the case of any allotment for cash of equity securities made during the period under review otherwise than to the holders of the company's equity shares in proportion to their holdings of such equity shares and which has not been specifically authorised by the company's shareholders:

(a) the classes of shares allotted and for each class of shares, the number allotted, their aggregate nominal value and the consideration received by the company for the allotment;
(b) the names of the allottees, if less than six in number, and in the case of six or more allottees a brief generic description of each new class of equity holder (e.g. holder of loan stock);
(c) the market price of the allotted securities on the date on which the terms of the issue were fixed; and
(d) the date on which the terms of the issue were fixed;

(8) the information required by paragraph (7) must be given for any unlisted major subsidiary undertaking of the company;
(9) where a listed company has listed shares in issue and is a subsidiary undertaking of another company, details of the participation by the parent undertaking in any placing made during the period under review;
(10) details of any contract of significance subsisting during the period under review:

(a) to which the listed company, or one of its subsidiary undertakings, is a party and in which a director of the listed company is or was materially interested; and
(b) between the listed company, or one of its subsidiary undertakings, and a controlling shareholder;

(11) details of any contract for the provision of services to the listed company or any of its subsidiary undertakings by a controlling shareholder, subsisting during the period under review, unless:

(a) it is a contract for the provision of services which it is the principal business of the shareholder to provide; and
(b) it is not a contract of significance;

(12) details of any arrangement under which a shareholder has waived or agreed to waive any dividends; and
(13) where a shareholder has agreed to waive future dividends, details of such waiver together with those relating to dividends which are payable during the period under review.

06/08/2007
Past version of LR 9.8.4 before 06/08/2007

LR 9.8.5

A listed company need not include with the annual report and accounts details of waivers of dividends of less than 1% of the total value of any dividend provided that some payment has been made on each share of the relevant class during the relevant calendar year.

01/07/2005

Additional information

LR 9.8.6

In the case of a listed company incorporated in the United Kingdom, the following additional items must be included in its annual financial report:

(1) a statement setting out all the interests (in respect of which transactions are notifiable to the company under DTR 3.1.2 R) of each person who is a director of the listed company as at the end of the period under review including:

(a) all changes in the interests of each director that have occurred between the end of the period under review and a date not more than one month prior to the date of the notice of the annual general meeting; or
(b) if there have been no changes in the period described in paragraph (a), a statement that there have been no changes in the interests of each director.

Interests of each director includes the interests of connected persons of which the listed company is, or ought upon reasonable enquiry to become, aware.
(2) a statement showing, as at a date not more than one month prior to the date of the notice of the annual general meeting:

(a) all information disclosed to the listed company in accordance with DTR 5; or
(b) that there have been no disclosures, if no disclosures have been made.

(3) a statement made by the directors that the business is a going concern, together with supporting assumptions or qualifications as necessary, that has been prepared in accordance with Going Concern and Financial Reporting: Guidance for Directors of listed companies registered in the United Kingdom, published in November 1994;
(4) a statement setting out:

(a) details of any shareholders authority for the purchase, by the listed company of its own shares that is still valid at the end of the period under review;
(b) in the case of purchases made otherwise than through the market or by tender to all shareholders, the names of sellers of such shares purchased, or proposed to be purchased, by the listed company during the period under review;
(c) in the case of any purchases made otherwise than through the market or by tender or partial offer to all shareholders, or options or contracts to make such purchases, entered into since the end of the period covered by the report, information equivalent to that required under Part II of Schedule 7 to the Companies Act 1985 (Disclosure required by company acquiring its own shares, etc); and
(d) in the case of sales of treasury shares for cash made otherwise than through the market, or in connection with an employees' share scheme, or otherwise than pursuant to an opportunity which (so far as was practicable) was made available to all holders of the listed company's securities (or to all holders of a relevant class of its securities) on the same terms, particulars of the names of purchasers of such shares sold, or proposed to be sold, by the company during the period under review;

(5) a statement of how the listed company has applied the principles set out in Section 1 of the Combined Code, in a manner that would enable shareholders to evaluate how the principles have been applied.
(6) a statement as to whether the listed company has:

(a) complied throughout the accounting period with all relevant provisions set out in Section 1 of the Combined Code; or
(b) not complied throughout the accounting period with all relevant provisions set out in Section 1 of the Combined Code and if so, setting out:

(i) those provisions, if any it has not complied with;
(ii) in the case of provisions whose requirements are of a continuing nature, the period within which, if any, it did not comply with some or all of those provisions; and
(iii) the company's reasons for non-compliance; and

(7) a report to the shareholders by the Board which contains all the matters set out in LR 9.8.8 R.

LR 9.8.6A

(1) The effect of LR 9.8.6R (1) is that a listed company is required to set out a 'snapshot' of the total interests of a director and his or her connected persons, as at the end of the period under review (including certain information to update it as at a date not more than a month before the date of the notice of the annual general meeting). The interests that need to be set out are limited to those in respect of which transactions fall to be notified under the notification requirement for PDMRs in DTR 3.1.2 R. Persons who are directors during, but not at the end of, the period under review need not be included.
(2) A listed company unable to compile the statement in LR 9.8.6R (1) from information already available to it may need to seek the relevant information, or confirmation, from the director himself, including that in relation to connected persons, but would not be expected to obtain information directly from connected persons.

06/10/2007

LR 9.8.7

An overseas company with a primary listing must disclose in its annual report and accounts:

(1) whether or not it complies with the corporate governance regime of its country of incorporation;
(2) the significant ways in which its actual corporate governance practices differ from those set out in the Combined Code; and
(3) the unexpired term of the service contract of any director proposed for election or re-election at the forthcoming annual general meeting and, if any director for election or re-election does not have a service contract, a statement to that effect.

01/07/2005
Future version of LR 9.8.7 after 06/04/2010

Report to shareholders

LR 9.8.8

The report to the shareholders by the Board required by LR 9.8.6R (7) must contain the following:

(1) a statement of the listed company's policy on executive directors' remuneration;
(2) information presented in tabular form, unless inappropriate, together with explanatory notes as necessary on:

(a) the amount of each element in the remuneration package for the period under review of each director, by name, including but not restricted to, basic salary and fees, the estimated money value of benefits in kind, annual bonuses, deferred bonuses, compensation for loss of office and payments for breach of contractor other termination payments;
(b) the total remuneration for each director for the period under review and for the corresponding prior period;
(c) any significant payments made to former directors during the period under review; and
(d) any share options, including Save-as-you-earn options, for each director, by name, in accordance with the requirements of the Directors' Remuneration Report Regulations;

(3) details of any long-term incentive schemes, other than share options as required by paragraph (2)(d), including the interests of each director, by name, in the long-term incentive schemes at the start of the period under review;
(4) details of any entitlements or awards granted and commitments made to each director under any long-term incentive schemes during the period, showing which crystallize either in the same year or in subsequent years;
(5) details of the monetary value and number of shares, cash payments or other benefits received by each director under any long-term incentive schemes during the period;
(6) details of the interests of each director in the long-term incentive schemes at the end of the period;
(7) an explanation and justification of any element of a director's remuneration, other than basic salary, which is pensionable;
(8) details of any directors' service contract with a notice period in excess of one year or with provisions for pre-determined compensation on termination which exceeds one years salary and benefits in kind, giving the reasons for such notice period;
(9) details of the unexpired term of any directors' service contract of a director proposed for election or re-election at the forthcoming annual general meeting, and, if any director proposed for election or re-election does not have a directors' service contract, a statement to that effect;
(10) a statement of the listed company's policy on the granting of options or awards under its employees' share schemes and other long-term incentive schemes, explaining and justifying any departure from that policy in the period under review and any change in the policy from the preceding year;
(11) for money purchase schemes details of the contribution or allowance payable or made by the listed company in respect of each director during the period under review; and
(12) for defined benefit schemes:

(a) details of the amount of the increase during the period under review (excluding inflation) and of the accumulated total amount at the end of the period in respect of the accrued benefit to which each director would be entitled on leaving service or is entitled having left service during the period under review;
(b) either:

(i) the transfer value (less director's contributions) of the relevant increase in accrued benefit (to be calculated in accordance with Actuarial Guidance Note GN11 but making no deduction for any under-funding) as at the end of the period; or
(ii) so much of the following information as is necessary to make a reasonable assessment of the transfer value in respect of each director:

(A) age;
(B) normal retirement age;
(C) the amount of any contributions paid or payable by the director under the terms of the scheme during the period under review;
(D) details of spouses and dependants benefits;
(E) early retirement rights and options;
(F) expectations of pension increases after retirement (whether guaranteed or discretionary); and
(G) discretionary benefits for which allowance is made in transfer values on leaving and any other relevant information which will significantly affect the value of the benefits; and

Information required by law

LR 9.8.9

The requirements of LR 9.8.6R (6) and LR 9.8.8 R relating to corporate governance are additional to the information required by law to be included in the listed company's annual report and accounts.

01/07/2005

Auditors report

LR 9.8.10

A listed company must ensure that the auditors review each of the following before the annual report is published:

(1) LR 9.8.6R (3) (statement by the directors that the business is a going concern); and
(2) the parts of the statement required by LR 9.8.6R (6) (corporate governance) that relate to the following provisions of the Combined Code:

(a) C1.1;
(b) C.2.1; and
(c) C3.1 to C3.7.

01/07/2005
Future version of LR 9.8.10 after 06/08/2010

LR 9.8.11

A listed company must ensure that the auditors review the following disclosures:

(1) LR 9.8.8R (2) (amount of each element in the remuneration package and information on share options);
(2) LR 9.8.8R (3), LR 9.8.8R (4) and (5) (details of long term incentive schemes for directors);
(3) LR 9.8.8R (11) (money purchase schemes); and
(4) LR 9.8.8R (12) (defined benefit schemes).

01/07/2005

LR 9.8.12

If, in the opinion of the auditors the listed company has not complied with any of the requirements set out in LR 9.8.11 R the listed company must ensure that the auditors report includes, to the extent possible, a statement giving details of the non-compliance.

01/07/2005

Summary financial statements

LR 9.8.13

Any summary financial statement issued by a listed company as permitted under the Companies Act 1985, must disclose:

(1) earnings per share; and
(2) the information required for summary financial statements set out in the Companies Act 1985.

LR 9 Annex 1

THE MODEL CODE (R)

01/07/2005

This annex is referred to in LR 9.2 (Requirements with continuing application) and LR 15 (Investment entities).

Table: The Model Code

Introduction

This code imposes restrictions on dealing in the securities of a listed company beyond those imposed by law. Its purpose is to ensure that persons discharging managerial responsibilities do not abuse, and do not place themselves under suspicion of abusing, inside information that they may be thought to have, especially in periods leading up to an announcement of the company's results.

Nothing in this code sanctions a breach of section 118 of the Act (Market abuse), the insider dealing provisions of the Criminal Justice Act or any other relevant legal or regulatory requirements.

Definitions

In this code the following definitions, in addition to those contained in the listing rules, apply unless the context requires otherwise:

(a)

close period means:

(i)

the period of 60 days immediately preceding a preliminary announcement of the listed company's annual results or, if shorter, the period from the end of the relevant financial year up to and including the time of announcement; or

(ii)

the period of 60 days immediately preceding the publication of its annual financial report or if shorter the period from the end of the relevant financial year up to and including the time of such publication; and

(iii)

if the listed company reports on a half yearly basis the period from the end of the relevant financial period up to and including the time of such publication; and

(iv)

if the listed company reports on a quarterly basis the period of 30 days immediately preceding the announcement of the quarterly results or, if shorter, the period from the end of the relevant financial period up to and including the time of the announcement;

(b)

connected person has the meaning given in section 96B (2) of the Act (Persons discharging managerial responsibilities and connected persons);

(c)

dealing includes:

(i)

any acquisition or disposal of, or agreement to acquire or dispose of any of the securities of the company;

(ii)

entering into a contract (including a contract for difference) the purpose of which is to secure a profit or avoid a loss by reference to fluctuations in the price of any of the securities of the company;

(iii)

the grant, acceptance, acquisition, disposal, exercise or discharge of any option (whether for the call, or put or both) to acquire or dispose of any of the securities of the company;

(iv)

entering into, or terminating, assigning or novating any stock lending agreement in respect of the securities of the company;

(v)

using as security, or otherwise granting a charge, lien or other encumbrance over the securities of the company;

(vi)

any transaction, including a transfer for nil consideration, or the exercise of any power or discretion effecting a change of ownership of a beneficial interest in the securities of the company; or

(vii)

any other right or obligation, present or future, conditional or unconditional, to acquire or dispose of any securities of the company;

(d)

[deleted]

(e)

prohibited period means:

(i)

any close period; or

(ii)

any period when there exists any matter which constitutes inside information in relation to the company;

(f)

restricted person means a person discharging managerial responsibilities; and

(g)

securities of the company means any publicly traded or quoted securities of the company or any member of its group or any securities that are convertible into such securities.

Dealings not subject to the provisions of this code

The following dealings are not subject to the provisions of this code:

(a)

undertakings or elections to take up entitlements under a rights issue or other offer (including an offer of securities of the company in lieu of a cash dividend);

(b)

the take up of entitlements under a rights issue or other offer (including an offer of securities of the company in lieu of a cash dividend);

(c)

allowing entitlements to lapse under a rights issue or other offer (including an offer of securities of the company in lieu of a cash dividend);

(d)

the sale of sufficient entitlements nil-paid to take up the balance of the entitlements under a rights issue;

(e)

undertakings to accept, or the acceptance of, a takeover offer;

(f)

dealing where the beneficial interest in the relevant security of the company does not change;

(g)

transactions conducted between a person discharging managerial responsibilities and their spouse, civil partner, child or step-child (within the meaning of section 96B(2) of the Act);

(h)

transfers of shares arising out of the operation of an employees' share scheme into a savings scheme investing in securities of the company following:

(i)

exercise of an option under an approved SAYE option scheme; or

(ii)

release of shares from a HM Revenue and Customs approved share incentive plan;

(i)

with the exception of a disposal of securities of the company received by a restricted person as a participant, dealings in connection with the following employees' share schemes;

(i)

an HM Revenue and Customs approved SAYE option scheme or share incentive plan, under which participation is extended on similar terms to all or most employees of the participating companies in that scheme; or

(ii)

a scheme on similar terms to a HM Revenue and Customs approved SAYE option scheme or share incentive plan, under which participation is extended on similar terms to all or most employees of the participating companies in that scheme; or

(j)

the cancellation or surrender of an option under an employees' share scheme;

(k)

transfers of the securities of the company by an independent trustee of an employees' share scheme to a beneficiary who is not a restricted person;

(l)

transfers of securities of the company already held by means of a matched sale and purchase into a saving scheme or into a pension scheme in which the restricted person is a participant or beneficiary;

(m)

an investment by a restricted person in a scheme or arrangement where the assets of the scheme (other than a scheme investing only in the securities of the company) or arrangement are invested at the discretion of a third party;

(n)

a dealing by a restricted person in the units of an authorised unit trust or in shares in an open-ended investment company; and

(o)

bona fide gifts to a restricted person by a third party.

Dealing by restricted persons

A restricted person must not deal in any securities of the company without obtaining clearance to deal in advance in accordance with paragraph 4 of this code.

Clearance to deal

(a)

A director (other than the chairman or chief executive) or company secretary must not deal in any securities of the company without first notifying the chairman (or a director designated by the board for this purpose) and receiving clearance to deal from him.

(b)

The chairman must not deal in any securities of the company without first notifying the chief executive and receiving clearance to deal from him or, if the chief executive is not present, without first notifying the senior independent director, or a committee of the board or other officer of the company nominated for that purpose by the chief executive, and receiving clearance to deal from that director, committee or officer.

(c)

The chief executive must not deal in any securities of the company without first notifying the chairman and receiving clearance to deal from him or, if the chairman is not present, without first notifying the senior independent director, or a committee of the board or other officer of the company nominated for that purpose by the chairman, and receiving clearance to deal from that director, committee or officer.

(d)

If the role of chairman and chief executive are combined, that person must not deal in any securities of the company without first notifying the board and receiving clearance to deal from the board.

(e)

Persons discharging managerial responsibilities (who are not directors) must not deal in any securities of the company without first notifying the company secretary or a designated director and receiving clearance to deal from him.

A response to a request for clearance to deal must be given to the relevant restricted person within five business days of the request being made.

The company must maintain a record of the response to any dealing request made by a restricted person and of any clearance given. A copy of the response and clearance (if any) must be given to the restricted person concerned.

A restricted person who is given clearance to deal in accordance with paragraph 4 must deal as soon as possible and in any event within two business days of clearance being received.

Circumstances for refusal

A restricted person must not be given clearance to deal in any securities of the company:

(a)

during a prohibited period; or

(b)

on considerations of a short term nature. An investment with a maturity of one year or less will always be considered to be of a short term nature.

Dealings permitted during a prohibited period

Dealing in exceptional circumstances

A restricted person, who is not in possession of inside information in relation to the company, may be given clearance to deal if he is in severe financial difficulty or there are other exceptional circumstances. Clearance may be given for such a person to sell (but not purchase) securities of the company when he would otherwise be prohibited by this code from doing so. The determination of whether the person in question is in severe financial difficulty or whether there are other exceptional circumstances can only be made by the director designated for this purpose.

A person may be in severe financial difficulty if he has a pressing financial commitment that cannot be satisfied otherwise than by selling the relevant securities of the company. A liability of such a person to pay tax would not normally constitute severe financial difficulty unless the person has no other means of satisfying the liability. A circumstance will be considered exceptional if the person in question is required by a court order to transfer or sell the securities of the company or there is some other overriding legal requirement for him to do so.

The FSA should be consulted at an early stage regarding any application by a restricted person to deal in exceptional circumstances.

Awards of securities and options

The grant of options by the board of directors under an employees' share scheme to individuals who are not restricted persons may be permitted during a prohibited period if such grant could not reasonably be made at another time and failure to make the grant would be likely to indicate that the company was in a prohibited period.

The award by the company of securities, the grant of options and the grant of rights (or other interests) to acquire securities of the company to restricted persons is permitted in a prohibited period if:

(a)

the award or grant is made under the terms of an employees' share scheme and the scheme was not introduced or amended during the relevant prohibited period; and

(b)

either:

(i)

the terms of such employees' share scheme set out the timing of the award or grant and such terms have either previously been approved by shareholders or summarised or described in a document sent to shareholders, or

(ii)

the timing of the award or grant is in accordance with the timing of previous awards or grants under the scheme; and

(c)

the terms of the employees' share scheme set out the amount or value of the award or grant or the basis on which the amount or value of the award or grant is calculated and do not allow the exercise of discretion; and

(d)

the failure to make the award or grant would be likely to indicate that the company is in a prohibited period.

Exercise of options

Where a company has been in an exceptionally long prohibited period or the company has had a number of consecutive prohibited periods, clearance may be given to allow the exercise of an option or right under an employees' share scheme, or the conversion of a convertible security, where the final date for the exercise of such option or right, or conversion of such security, falls during a prohibited period and the restricted person could not reasonably have been expected to exercise it at a time when he was free to deal.

Where the exercise or conversion is permitted pursuant to paragraph 14, clearance may not be given for the sale of the securities of the company acquired pursuant to such exercise or conversion including the sale of sufficient securities of the company to fund the costs of the exercise or conversion and/or any tax liability arising from the exercise or conversion unless a binding undertaking to do so was entered into when the company was not in a prohibited period.

Qualification shares

Clearance may be given to allow a director to acquire qualification shares where, under the company's constitution, the final date for acquiring such shares falls during a prohibited period and the director could not reasonably have been expected to acquire those shares at another time.

Saving schemes

A restricted person may enter into a scheme under which only the securities of the company are purchased pursuant to a regular standing order or direct debit or by regular deduction from the person's salary, or where such securities are acquired by way of a standing election to re-invest dividends or other distributions received, or are acquired as part payment of the person's remuneration without regard to the provisions of this code, if the following provisions are complied with:

(a)

the restricted person does not enter into the scheme during a prohibited period, unless the scheme involves the part payment of remuneration in the form of securities of the company and is entered into upon the commencement of the person's employment or in the case of a non-executive director his appointment to the board;

(b)

the restricted person does not carry out the purchase of the securities of the company under the scheme during a prohibited period, unless the restricted person entered into the scheme at a time when the company was not in a prohibited period and that person is irrevocably bound under the terms of the scheme to carry out a purchase of securities of the company (which may include the first purchase under the scheme) at a fixed point in time which falls in a prohibited period;

(c)

the restricted person does not cancel or vary the terms of his participation, or carry out sales of securities of the company within the scheme during a prohibited period; and

(d)

before entering into the scheme, cancelling the scheme or varying the terms of his participation or carrying out sales of the securities of the company within the scheme, the restricted person obtains clearance in accordance with paragraph 4.

Acting as a trustee

Where a restricted person is acting as a trustee, dealing in the securities of the company by that trust is permitted during a prohibited period where:

(a)

the restricted person is not a beneficiary of the trust; and

(b)

the decision to deal is taken by the other trustees or by investment managers on behalf of the trustees independently of the restricted person.

The other trustees or investment managers acting on behalf of the trustees can be assumed to have acted independently where the decision to deal:

(a)

was taken without consultation with, or other involvement of, the restricted person; or

(b)

was delegated to a committee of which the restricted person is not a member.

Dealing by connected persons and investment managers

A person discharging managerial responsibilities must take reasonable steps to prevent any dealings by or on behalf of any connected person of his in any securities of the company on considerations of a short term nature.

A person discharging managerial responsibilities must seek to prohibit any dealings in the securities of the company during a close period:

(a)

by or on behalf of any connected person of his; or

(b)

by an investment manager on his behalf or on behalf of any person connected with him where either he or any person connected has funds under management with that investment fund manager, whether or not discretionary (save as provided by paragraphs 17 and 18).

A person discharging managerial responsibilities must advise all of his connected persons and investment managers acting on his behalf:

(a)

of the name of the listed company within which he is a person discharging managerial responsibilities;

(b)

of the close periods during which they cannot deal in the securities of the company; and

(c)

that they must advise the listed company immediately after they have dealt in securities of the company.

Export chapter as

Legal Instruments that change this Chapter Continuing obligations

LR 10

Significant transactions

LR 10.1

Preliminary

01/07/2005

Application

LR 10.1.1

This chapter applies to a company that has a primary listing of equity securities.

01/07/2005
Future version of LR 10.1.1 after 06/04/2010

Purpose

LR 10.1.2

The purpose of this chapter is to ensure that shareholders of companies with equity securities listed:

(1) are notified of certain transactions entered into by the listed company; and
(2) have the opportunity to vote on larger proposed transactions.

01/07/2005
Future version of LR 10.1.2 after 06/04/2010

Meaning of "transaction"

LR 10.1.3

In this chapter (except where specifically provided to the contrary) a reference to a transaction by a listed company:

(1) (subject to paragraphs (3), (4) and (5)) includes all agreements (including amendments to agreements) entered into by the listed company or its subsidiary undertakings;
(2) includes the grant or acquisition of an option as if the option had been exercised except that, if exercise is solely at the listed company's or subsidiary undertaking's discretion, the transaction will be classified on exercise and only the consideration (if any) for the option will be classified on the grant or acquisition;
(3) excludes a transaction of a revenue nature in the ordinary course of business;
(4) excludes an issue of securities, or a transaction to raise finance, which does not involve the acquisition or disposal of any fixed asset of the listed company or of its subsidiary undertakings; and
(5) excludes any transaction between the listed company and its wholly-owned subsidiary undertaking or between its wholly-owned subsidiary undertakings.

01/07/2005
Future version of LR 10.1.3 after 01/10/2012

LR 10.1.4

This chapter is intended to cover transactions that are outside the ordinary course of the listed company's business and may change a security holder's economic interest in the company's assets or liabilities (whether or not the change in the assets or liabilities is recognised on the company's balance sheet).

01/07/2005

LR 10.1.5

In assessing whether a transaction is in the ordinary course of a company's business under this chapter, the FSA will have regard to the size and incidence of similar transactions which the company has entered into. The FSA may determine that a transaction is not in the ordinary course of business because of its size or incidence.

01/07/2005

LR 10.2

Classifying transactions

01/07/2005

Classifying transactions

LR 10.2.1

A transaction is classified by assessing its size relative to that of the listed company proposing to make it. The comparison of size is made by using the percentage ratios resulting from applying the class test calculations to a transaction. The class tests are set out in LR 10 Annex 1 (and modified or added to for specialist companies under LR 10.7).

01/07/2005

LR 10.2.2

Except as otherwise provided in this chapter, transactions are classified as follows:

(1) Class 3 transaction: a transaction where all percentage ratios are less than 5%;
(2) Class 2 transaction: a transaction where any percentage ratio is 5% or more but each is less than 25%;
(3) Class 1 transaction: a transaction where any percentage ratio is 25% or more; and
(4) Reverse takeover: a transaction consisting of an acquisition by a listed company of a business, an unlisted company or assets where any percentage ratio is 100% or more or which would result in a fundamental change in the business or in a change in board or voting control of the listed company.

01/07/2005
Future version of LR 10.2.2 after 01/10/2012

Certain reverse takeovers to be treated as class 1 transactions

LR 10.2.3

A reverse takeover is to be treated as a class 1 transaction if all of the following conditions are satisfied in relation to the transaction:

(1) none of the percentage ratios resulting from the calculations under each of the class tests in LR 10 Annex 1 (as modified or added to by LR 10.7 where applicable) exceed 125%;
(2) the subject of the acquisition is in a similar line of business to that of the acquiring company;
(3) the undertaking the subject of the acquisition complies with all relevant requirements of LR 6;
(4) there will be no change of board control of the listed company; and
(5) there will be no change of voting control of the listed company.

01/07/2005

Indemnities and similar arrangements

LR 10.2.4

(1) Any agreement or arrangement with a party (other than a wholly owned subsidiary undertaking of the listed company):

(a) under which a listed company agrees to discharge any liabilities for costs, expenses, commissions or losses incurred by or on behalf of that party, whether or not on a contingent basis;
(b) which is exceptional; and
(c) under which the maximum liability is either unlimited, or is equal to or exceeds an amount equal to 25% of the average of the listed company's profits (as calculated for classification purposes) for the last three financial years (losses should be taken as nil profit and included in this average);

is to be treated as a class 1 transaction.
(2) Paragraph (1) does not apply to a break fee (see LR 10.2.7 R which deals with break fees).

01/07/2005
Future version of LR 10.2.4 after 01/10/2012

LR 10.2.5

For the purposes of LR 10.2.4R (1), the FSA considers the following indemnities not to be exceptional:

(1) those customarily given in connection with sale and purchase agreements;
(2) those customarily given to underwriters or placing agents in an underwriting or placing agreement;
(3) those given to advisers against liabilities to third parties arising out of providing advisory services; and
(4) any other indemnity that is specifically permitted to be given to a director or auditor under the Companies Act 2006.

06/08/2007
Past version of LR 10.2.5 before 06/08/2007

LR 10.2.6

If the calculation under LR 10.2.4R (1) produces an anomalous result, the FSA may disregard the calculation and modify that rule to substitute other relevant indicators of the size of the indemnity or other arrangement given, for example 1% of market capitalisation.

01/07/2005

LR 10.2.7

(1) A break fee or break fees payable in respect of a transaction are to be treated as a class 1 transaction if the total value of the fee or the fees in aggregate exceeds:

(a) if the listed company is being acquired, 1% of the value of the listed company calculated by reference to the offer price; and
(b) in any other case, 1% of the market capitalisation of the listed company.

(2) For the purposes of paragraph (1)(a):

(a) the 1% limit is to be calculated on the basis of the fully diluted equity share capital of the listed company;
(b) any VAT payable is to be taken into account in determining whether the 1% limit would be exceeded (except to the extent that the VAT is recoverable by the listed company); and
(c) for a securities exchange offer, the value of the listed company is to be fixed by reference to the value of the offer at the time the transaction is announced (and is not to be taken as fluctuating as a result of subsequent movements in the price of the consideration securities after the announcement).

01/07/2005
Future version of LR 10.2.7 after 01/10/2012

Issues by major subsidiary undertakings

LR 10.2.8

If:

(1) a major subsidiary undertaking of a listed company issues equity shares for cash or in exchange for other securities or to reduce indebtedness;
(2) the issue would dilute the listed company's percentage interest in the major subsidiary undertaking; and
(3) the economic effect of the dilution is equivalent to a disposal of 25% or more of the aggregate of the gross assets or profits (after the deduction of all charges except taxation) of the group;

the issue is to be treated as a class 1 transaction.

01/07/2005

LR 10.2.9

LR 10.2.8 R does not apply if the major subsidiary undertaking is itself a listed company.

01/07/2005

Aggregating transactions

LR 10.2.10

(1) Transactions completed during the 12 months before the date of the latest transaction must be aggregated with that transaction for the purposes of classification if:

(a) they are entered into by the company with the same person or with persons connected with one another;
(b) they involve the acquisition or disposal of securities or an interest in one particular company; or
(c) together they lead to substantial involvement in a business activity which did not previously form a significant part of the company's principal activities.

(2) Paragraph (1) does not apply in relation to break fees.
(3) If under this rule aggregation of transactions results in a requirement for shareholder approval, then that approval is required only for the latest transaction.

01/07/2005
Future version of LR 10.2.10 after 01/10/2012

LR 10.2.11

The FSA may modify these rules to require the aggregation of transactions in circumstances other than those specified in LR 10.2.10 R.

Note: If an issuer is proposing to enter into a transaction that could be a Class 1 transaction or reverse takeover it is required under LR 8 to obtain the guidance of a sponsor to assess the potential application of LR 10.

01/07/2005

LR 10.3

Class 3 requirements

01/07/2005

Notification of acquisitions involving the issue of securities

LR 10.3.1

(1) If:

(a) a listed company agrees the terms of a class 3 transaction that involves an acquisition; and
(b) the consideration for the acquisition includes the issue of securities for which listing will be sought;

the company must notify a RIS as soon as possible after the terms of the acquisition are agreed.
(2) The notification must include:

(a) the amount of the securities being issued;
(b) details of the transaction, including the name of the other party to the transaction; and
(c) either the value of the consideration, and how this is being satisfied, or the value of the gross assets acquired, whichever is the greater.

01/07/2005

Notification of other class 3 transactions

LR 10.3.2

(1) If:

(a) a listed company agrees the terms of a class 3 transaction of a type other than that referred to in LR 10.3.1 R; and
(b) it releases any details to the public;

it must also notify those details to a RIS by no later than the release of details to the public referred to in paragraph (b).
(2) The notification must include:

(a) details of the transaction, including the name of the other party to the transaction; and
(b) either the value of the consideration, and how this is being satisfied, or the value of the gross assets acquired or disposed of.

01/07/2005

LR 10.4

Class 2 requirements

01/07/2005

Notification of class 2 transactions

LR 10.4.1

(1) A listed company must notify a RIS as soon as possible after the terms of a class 2 transaction are agreed.
(2) The notification must include:

(a) details of the transaction, including the name of the other party to the transaction;
(b) a description of the business carried on by, or using, the net assets the subject of the transaction;
(c) the consideration, and how it is being satisfied (including the terms of any arrangements for deferred consideration);
(d) the value of the gross assets the subject of the transaction;
(e) the profits attributable to the assets the subject of the transaction;
(f) the effect of the transaction on the listed company including any benefits which are expected to accrue to the company as a result of the transaction;
(g) details of any service contracts of proposed directors of the listed company;
(h) for a disposal, the application of the sale proceeds;
(i) for a disposal, if securities are to form part of the consideration received, a statement whether the securities are to be sold or retained; and
(j) details of key individuals important to the business or company the subject of the transaction.

01/07/2005

Supplementary notification

LR 10.4.2

(1) A listed company must notify a RIS as soon as possible if, after the notification under LR 10.4.1 R, it becomes aware that:

(a) there has been a significant change affecting any matter contained in that earlier notification; or
(b) a significant new matter has arisen which would have been required to be mentioned in that earlier notification if it had arisen at the time of the preparation of that notification.

(2) The supplementary notification must give details of the change or new matter and also contain a statement that, except as disclosed, there has been no significant change affecting any matter contained in the earlier notification and no other significant new matter has arisen which would have been required to be mentioned in that earlier notification if it had arisen at the time of the preparation of that notification.
(3) In paragraphs (1) and (2), significant means significant for the purpose of making an informed assessment of the assets and liabilities, financial position, profits and losses and prospects of the listed company and the rights attaching to any securities forming part of the consideration. It includes a change in the terms of the transaction that affects the percentage ratios and requires the transaction to be reclassified into a higher category.

01/07/2005

LR 10.5

Class 1 requirements

01/07/2005

Notification and shareholder approval

LR 10.5.1

A listed company must, in relation to a class 1 transaction:

(1) comply with the requirements of LR 10.4 (Class 2 requirements) for the transaction;
(2) send an explanatory circular to its shareholders and obtain their prior approval in a general meeting for the transaction; and
(3) ensure that any agreement effecting the transaction is conditional on that approval being obtained.

Note: LR 13 sets out requirements for the content and approval of class 1 circulars.

01/07/2005

Material change to terms of transaction

LR 10.5.2

If, after the production of a circular and before the completion of a class 1 transaction or a reverse takeover, there is a material change to the terms of the transaction, the listed company must comply again separately with LR 10.5.1 R in relation to the transaction.

06/08/2007
Future version of LR 10.5.2 after 01/10/2012

LR 10.5.3

The FSA would (amongst other things) generally consider an increase of 10% or more in the consideration payable to be a material change to the terms of the transaction.

06/08/2007

LR 10.6

Reverse takeover requirements

01/07/2005

LR 10.6.1

A listed company must in relation to a reverse takeover comply with the requirements of LR 10.5 (Class 1 requirements) for that transaction.

01/07/2005

Material change to terms of reverse takeover

LR 10.6.1A

LR 10.5.2 R and LR 10.5.3 G will apply if there is a material change to the terms of a reverse takeover.

06/08/2007

Cancellation of listing

LR 10.6.2

When a listed company completes a reverse takeover, the FSA will generally cancel the listing of its securities (see LR 5.2.3 G) and the company will be required to re-apply for the listing of the securities and satisfy the relevant requirements for listing (except that LR 6.1.3 R (1)(b)) will not apply in relation to the listed company's accounts).

01/07/2005
Future version of LR 10.6.2 after 06/04/2010

Suspended listing

LR 10.6.3

Before a listed company announces a reverse takeover which has been agreed or is in contemplation or where details of the reverse takeover have leaked, a listed company should consider whether a suspension of listing is appropriate. Generally, when a reverse takeover is announced or leaked, because of its significant size there will be insufficient information in the market about the proposed transaction and the company will be unable to assess accurately its financial position and inform the market accordingly. So, suspension will often be appropriate (see LR 5.1.2 G (3) and (4)). But, if the FSA is satisfied that there is sufficient information in the market about the proposed transaction it may agree with the company that a suspension is not required.

06/08/2007

LR 10.7

Transactions by specialist companies

01/07/2005

Classification of transactions by listed property companies

LR 10.7.1

LR 10 Annex 1 is modified as follows in relation to acquisitions or disposals of property by a listed property company:

(1) for the purposes of paragraph 2R(1) (the gross assets test), the assets test is calculated by dividing the transaction consideration by the gross assets of the listed property company and paragraphs 2R(5) and 2R(6) do not apply;
(2) for the purposes of paragraph 2R(1) (the gross assets test), if the transaction is an acquisition of land to be developed, the assets test is calculated by dividing the transaction consideration and any financial commitments relating to the development by the gross assets of the listed property company and paragraphs 2R(5) and 2R(6) do not apply;
(3) for the purposes of paragraph 2R(2), the gross assets of a listed property company are, at the option of the company:

(a) the aggregate of the company's share capital and reserves (excluding minority interests);
(b) the book value of the company's properties (excluding those properties classified as current assets in the latest published annual report and accounts); or
(c) the published valuation of the company's properties (excluding those properties classified as current assets in the latest published annual report and accounts);

(4) for the purposes of paragraph 4R(1) (the profits test), profits means the net annual rent;
(5) paragraph 5R (the consideration test) does not apply but instead the test in LR 10.7.2 R applies; and
(6) paragraph 7R (the gross capital test) applies to disposals as well as acquisitions of property.

01/07/2005

LR 10.7.2

(1) In addition to the tests in LR 10 Annex 1, if the transaction is an acquisition of property by a listed property company and any of the consideration is in the ordinary shares of that company, the listed company must determine the percentage ratios that result from the calculations under the test in paragraph (2).
(2) The share capital test is calculated by dividing the number of consideration shares to be issued by the number of ordinary shares in issue (excluding treasury shares).

01/07/2005
Future version of LR 10.7.2 after 06/04/2010

LR 10.7.3

LR 10 does not apply to the acquisition or disposal by a listed property company of a property in the ordinary course of business which:

(1) for an acquisition, will be classified as a current asset in the company's published accounts; or
(2) for a disposal, was so classified in the company's published accounts.

01/07/2005

LR 10.7.4

LR 10 may apply to subsequent transfers of property assets from current to fixed assets or from fixed to current assets in the accounts of a property company.

01/07/2005

Classification of transactions by listed mineral companies

LR 10.7.5

(1) In addition to the tests in LR 10 Annex 1, a listed mineral company undertaking a transaction involving significant mineral resources must determine the percentage ratios that result from the calculations under the test in paragraph (2).
(2) The reserves test is calculated by dividing the volume or amount of the proven reserves and probable reserves to be acquired or disposed of by the volume or amount of the aggregate proven reserves and probable reserves of the mineral company making the acquisition or disposal.

01/07/2005

LR 10.7.6

If the mineral resources are not directly comparable, the FSA may modify LR 10.7.5R (2) to permit valuations to be used instead of amounts or volumes.

01/07/2005

LR 10.7.7

When calculating the size of a transaction under LR 10 Annex 1 and LR 10.7.5 R, account must be taken of any associated transactions or loans effected or intended to be effected, and any contingent liabilities or commitments.

01/07/2005

Classification of transactions by listed scientific research based companies

LR 10.7.8

A listed scientific research based company undertaking a transaction should consult the FSA at an early stage to determine whether industry specific tests are required instead of or in addition to the class tests in LR 10 Annex 1.

01/07/2005

LR 10.8

Miscellaneous

01/07/2005

Class 1 disposals by companies in severe financial difficulty

LR 10.8.1

(1) A listed company in severe financial difficulty may find itself with no alternative but to dispose of a substantial part of its business within a short time frame to meet its ongoing working capital requirements or to reduce its liabilities. Due to time constraints it may not be able to prepare a circular and convene an extraordinary general meeting to obtain prior shareholder approval.
(2) The FSA may modify the requirements in LR 10.5 to prepare a circular and to obtain shareholder approval for such a disposal, if the company:

(a) can demonstrate that it is in severe financial difficulty; and
(b) satisfies the conditions in LR 10.8.2 G to LR 10.8.6 G.

(3) An application to modify LR 10.5 should be brought to the FSA's attention at the earliest available opportunity and at least five clear business days before the terms of the disposal are agreed.

01/07/2005

LR 10.8.2

The listed company should demonstrate to the FSA that it could not reasonably have entered into negotiations earlier to enable shareholder approval to be sought.

01/07/2005

LR 10.8.3

The following documents should be provided in writing to the FSA:

(1) confirmation from the listed company that:

(a) negotiation does not allow time for shareholder approval;
(b) all alternative methods of financing have been exhausted and the only option remaining is to dispose of a substantial part of their business;
(c) by taking the decision to dispose of part of the business to raise cash, the directors are acting in the best interests of the company and shareholders as a whole and that unless the disposal is completed receivers, administrators or liquidators are likely to be appointed; and
(d) if the disposal is to a related party, that the disposal by the company to the related party is the only available option in the current circumstances.

(2) confirmation from the company's sponsor that, in its opinion and on the basis of information available to it, the company is in severe financial difficulty and that it will not be in a position to meet its obligations as they fall due unless the disposal takes place according to the proposed timetable;
(3) confirmation from the persons providing finance stating that further finance or facilities will not be made available and that unless the disposal is effected immediately, current facilities will be withdrawn; and
(4) an announcement that complies with LR 10.8.4 G and LR 10.8.5 G.

01/07/2005

LR 10.8.4

An announcement should be notified to a RIS no later than the date the terms of the disposal are agreed and should contain:

(1) all relevant information required to be notified under LR 10.4.1 R;
(2) the name of the acquirer and the expected date of completion of the disposal;
(3) full disclosure about the continuing groups prospects for at least the current financial year;
(4) a statement that the directors believe that the disposal is in the best interests of the company and shareholders as a whole. The directors should also state that if the disposal is not completed the company will be unable to meet its financial commitments as they fall due and consequently will be unable to continue to trade resulting in the appointment of receivers, liquidators or administrators;
(5) a statement incorporating the details of all the confirmations provided to the FSA in LR 10.8.3 G;
(6) details of any financing arrangements (either current or future) if they are contingent upon the disposal being effected;
(7) if the disposal is to a related party, then a statement as set out in LR 13.6.1R(5) must be given;
(8) a statement by the listed company that in its opinion the working capital available to the continuing group is sufficient for the groups present requirements, that is, for at least 12 months from the date of the announcement, or, if not, how it is proposed to provide the additional working capital thought by the company to be necessary.

01/07/2005

LR 10.8.5

The announcement should contain any further information that the company and its sponsors consider necessary. This should incorporate historical price sensitive information, which has already been published in relation to the disposal along with any further information required to be disclosed under DTR 2 (disclosure of inside information).

01/07/2005

LR 10.8.6

(1) The FSA will wish to examine the documents referred to in LR 10.8.3 G (including the RIS announcement) before it grants the modification and before the announcement is released.
(2) The documents should ordinarily be lodged with the FSA:

(a) in draft form at least five clear business days before the terms of the transaction are agreed; and
(b) in final form on the day on which approval is sought.

01/07/2005

LR 10.8.7

In relation to the listed company's financial position, DTR 2 (disclosure of inside information) continues to apply while the company is seeking a modification.

01/07/2005

LR 10.8.8

The directors should also consider whether the listed company's financial situation is such that they should request the suspension of its listing pending publication of an announcement and clarification of its financial position.

01/07/2005

Joint ventures

LR 10.8.9

(1) When a listed company enters into a joint venture it should consider how this chapter applies.
(2) It is common, when entering into a joint venture, for the partners to include exit provisions in the terms of the agreement. These typically give each partner a combination of rights and obligations to either sell their own holding or to acquire their partner's holding should certain triggering events occur.
(3) If the listed company does not retain sole discretion over the event which requires them to either purchase the joint venture partner's stake or to sell their own, LR 10.1.3R (2) requires this obligation to be classified at the time it is agreed as though it had been exercised at that time. Further, if the consideration to be paid is to be determined by reference to the future profitability of the joint venture or an independent valuation at the time of exercise, this consideration will be treated as being uncapped. If this is the case, the initial agreement will be classified in accordance with LR 10 Annex 1 5R (3) and (3A) at the time it is entered into.
(4) If the listed company does retain sole discretion over the triggering event, or if the listed company is making a choice to purchase or sell following an event which has been triggered by the joint venture partner, the purchase or sale must be classified when this discretion is exercised or when the choice to purchase or sell is made.

LR 10 Annex 1

The Class Tests

01/07/2005

LR 10 Annex 1.1

Class tests

This Annex sets out the following class tests:

(1)

the gross assets test;

(2)

the profits test;

(3)

the consideration test; and

(4)

the gross capital test.

The Gross Assets test

(1)

The assets test is calculated by dividing the gross assets the subject of the transaction by the gross assets of the listed company.

(2)

The gross assets of the listed company means the total non-current assets, plus the total current assets, of the listed company.

(3)

For:

(a)

an acquisition of an interest in an undertaking which will result in consolidation of the assets of that undertaking in the accounts of the listed company; or

(b)

a disposal of an interest in an undertaking which will result in the assets of that undertaking no longer being consolidated in the accounts of the listed company;

the gross assets the subject of the transaction means the value of 100% of that undertakings assets irrespective of what interest is acquired or disposed of.

(4)

For an acquisition or disposal of an interest in an undertaking which does not fall within paragraph (3), the gross assets the subject of the transaction means:

(a)

for an acquisition, the consideration together with liabilities assumed (if any); and

(b)

for a disposal, the assets attributed to that interest in the listed companys accounts.

(5)

If there is an acquisition of assets other than an interest in an undertaking, the assets the subject of the transaction means the consideration or, if greater, the book value of those assets as they will be included in the listed company's balance sheet.

(6)

If there is a disposal of assets other than an interest in an undertaking, the assets the subject of the transaction means the book value of the assets in the listed company's balance sheet.

The FSA may modify paragraph 2R to require, when calculating the assets the subject of the transaction, the inclusion of further amounts if contingent assets or arrangements referred to in LR 10.2.4 R (indemnities and similar arrangements) are involved.

The Profits test

(1)

The profits test is calculated by dividing the profits attributable to the assets the subject of the transaction by the profits of the listed company.

(2)

For the purposes of paragraph (1), profits means:

(a)

profits after deducting all charges except taxation; and

(b)

for an acquisition or disposal of an interest in an undertaking referred to in paragraph 2R (3)(a) or (b) of this Annex, 100% of the profits of the undertaking (irrespective of what interest is acquired or disposed of).

The Consideration test

(1)

The consideration test is calculated by taking the consideration for the transaction as a percentage of the aggregate market value of all the ordinary shares (excluding treasury shares) of the listed company.

(2)

For the purposes of paragraph (1):

(a)

the consideration is the amount paid to the contracting party;

(b)

if all or part of the consideration is in the form of securities to be traded on a market, the consideration attributable to those securities is the aggregate market value of those securities; and

(c)

if deferred consideration is or may be payable or receivable by the listed company in the future, the consideration is the maximum total consideration payable or receivable under the agreement.

(3)

If the total consideration is not subject to any maximum (and the other class tests indicate the transaction to be a class 2 transaction) the transaction is to be treated as a class 1 transaction.

(3A)

If the total consideration is not subject to any maximum (and the other class tests indicate the transaction to be a class 3 transaction) the transaction is to be treated as a class 2 transaction.

(4)

For the purposes of sub-paragraph (2)(b), the figures used to determine consideration consisting of:

(a)

securities of a class already listed, must be the aggregate market value of all those securities on the last business day before the announcement; and

(b)

a new class of securities for which an application for listing will be made, must be the expected aggregate market value of all those securities.

(5)

For the purposes of paragraph (1), the figure used to determine market capitalisation is the aggregate market value of all the ordinary shares (excluding treasury shares) of the listed company at the close of business on the last business day before the announcement.

The FSA may modify paragraph 5R to require the inclusion of further amounts in the calculation of the consideration. For example, if the purchaser agrees to discharge any liabilities, including the repayment of inter-company or third party debt, whether actual or contingent, as part of the terms of the transaction.

The Gross Capital test

(1)

The gross capital test is calculated by dividing the gross capital of the company or business being acquired by the gross capital of the listed company.

(2)

The test in paragraph (1) is only to be applied for an acquisition of a company or business.

(3)

For the purposes of paragraph (1), the gross capital of the company or business being acquired means the aggregate of:

(a)

the consideration (as calculated under paragraph 5R of this Annex);

(b)

if a company, any of its shares and debt securities which are not being acquired;

(c)

all other liabilities (other than current liabilities) including for this purpose minority interests and deferred taxation; and

(d)

any excess of current liabilities over current assets.

(4)

For the purposes of paragraph (1), the gross capital of the listed company means the aggregate of:

(a)

the market value of its shares (excluding treasury shares) and the issue amount of the debt security;

(b)

all other liabilities (other than current liabilities) including for this purpose minority interests and deferred taxation; and

(c)

any excess of current liabilities over current assets.

(5)

For the purposes of paragraph (1):

(a)

figures used must be, for shares and debt security aggregated for the purposes of the gross capital percentage ratio, the aggregate market value of all those shares (or if not available before the announcement, their nominal value) and the issue amount of the debt security; and

(b)

for shares and debt security aggregated for the purposes of paragraph (3)(b), any treasury shares held by the company are not to be taken into account.

Figures used to classify assets and profits

(1)

For the purposes of calculating the tests in this Annex, except as otherwise stated in paragraphs (2) to (6), figures used to classify assets and profits, must be the figures shown in the latest published audited consolidated accounts or, if a listed company has, or will have, published a preliminary statement of later annual results at the time the terms of a transaction are agreed, the figures shown in that preliminary statement.

(2)

If a balance sheet has been published in a subsequently published interim statement then gross assets and gross capital should be taken from the balance sheet published in the interim statement.

(3)

(a)

The figures of the listed company must be adjusted to take account of subsequent transactions which have been notified to a RIS under LR 10.4 or LR 10.5.

(b)

The figures of the target company or business must be adjusted to take account of subsequent transactions which would have been a class 2 transaction or greater when classified against the target as a whole.

(4)

Figures on which the auditors are unable to report without modification must be disregarded.

(5)

When applying the percentage ratios to an acquisition by a company whose assets consist wholly or predominantly of cash or short-dated securities, the cash and short-dated securities must be excluded in calculating its assets and market capitalisation.

(6)

The principles in this paragraph also apply (to the extent relevant) to calculating the assets and profits of the target company or business.

The FSA may modify paragraph 8R(4) in appropriate cases to permit figures to be taken into account.

Anomalous results

10G

If a calculation under any of the class tests produces an anomalous result or if a calculation is inappropriate to the activities of the listed company, the FSA may modify the relevant rule to substitute other relevant indicators of size, including industry specific tests.

Export chapter as

Legal Instruments that change this Chapter Significant transactions

LR 11

Related party transactions

LR 11.1

Related party transactions

01/07/2005

Application

LR 11.1.1

This chapter applies to a company that has a primary listing of equity securities.

01/07/2005
Future version of LR 11.1.1 after 06/04/2010

Purpose

LR 11.1.2

(1) This chapter sets out safeguards that apply to:

(a) transactions and arrangements between a listed company and a related party; and
(b) transactions and arrangements between a listed company and any other person that may benefit a related party.

(2) The safeguards are intended to prevent a related party from taking advantage of its position and also to prevent any perception that it may have done so.

01/07/2005

Transaction

LR 11.1.3

A reference in this chapter:

(1) to a transaction or arrangement by a listed company includes a transaction or arrangement by its subsidiary undertaking; and
(2) to a transaction or arrangement is, unless the contrary intention appears, a reference to the entering into of the agreement for the transaction or the entering into of the arrangement.

01/07/2005

Definition of "related party"

LR 11.1.4

In LR, a "related party" means:

(1) a person who is (or was within the 12 months before the date of the transaction or arrangement) a substantial shareholder; or
(2) a person who is (or was within the 12 months before the date of the transaction or arrangement) a director or shadow director of the listed company or of any other company which is (and, if he has ceased to be such, was while he was a director or shadow director of such other company) its subsidiary undertaking or parent undertaking or a fellow subsidiary undertaking of its parent undertaking; or
(3) [deleted]
(4) a person exercising significant influence; or
(5) an associate of a related party referred to in paragraph (1), (2) or (4).

06/08/2007
Past version of LR 11.1.4 before 06/08/2007

Definition of "related party transaction"

LR 11.1.5

In LR, a "related party transaction" means:

(1) a transaction (other than a transaction of a revenue nature in the ordinary course of business) between a listed company and a related party; or
(2) an arrangement pursuant to which a listed company and a related party each invests in, or provides finance to, another undertaking or asset; or
(3) any other similar transaction or arrangement (other than a transaction of a revenue nature in the ordinary course of business) between a listed company and any other person the purpose and effect of which is to benefit a related party.

01/07/2005
Future version of LR 11.1.5 after 01/10/2012

LR 11.1.5A

In assessing whether a transaction is in the ordinary course of business under this chapter, the FSA will have regard to the size and incidence of the transaction and also whether the terms and conditions of the transaction are unusual.

06/08/2007

Transactions to which this chapter does not apply

LR 11.1.6

LR 11.1.7 R to LR 11.1.10 R do not apply to a related party transaction if it is a transaction or arrangement:

(1) of a kind referred to in paragraph 1 of LR 11 Annex 1 (a small transaction); or
(2) of a kind referred to in paragraph 2 to 10 of LR 11 Annex 1 and does not have any unusual features.

Note: If an issuer is proposing to enter into a transaction that could be a related party transaction it is required under LR 8 to obtain the guidance of a sponsor to assess the potential application of LR 11.

01/07/2005
Future version of LR 11.1.6 after 06/06/2011

Requirements for related party transactions

LR 11.1.7

If a listed company enters into a related party transaction, the listed company must:

(1) make a notification in accordance with LR 10.4.1 R (Notification of class 2 transactions) that contains the details required by that rule and also:

(a) the name of the related party; and
(b) details of the nature and extent of the related party's interest in the transaction or arrangement;

(2) send a circular to its shareholders containing the information required by LR 13.3 and LR 13.6;
(3) obtain the approval of its shareholders for the transaction or arrangement either:

(a) before it is entered into; or
(b) if the transaction or arrangement is expressed to be conditional on that approval, before it is completed; and

(4) ensure that the related party:

(a) does not vote on the relevant resolution; and
(b) takes all reasonable steps to ensure that the related party's associates do not vote on the relevant resolution.

01/07/2005

LR 11.1.8

If a meeting of the listed company has been called to approve a transaction or arrangement and, after the date of the notice of meeting but before the meeting itself, a party to that transaction or arrangement has become a related party, then to comply with LR 11.1.7 R the listed company should:

(1) ensure that the related party concerned does not vote on the relevant resolution and that the related party takes all reasonable steps to ensure that its associates do not vote on the relevant resolution; and
(2) send a further circular, for receipt by shareholders at least one clear business day before the last time for lodging proxies for the meeting, containing any information required by LR 13.3 (Contents of all circulars) and LR 13.6 (Related party circulars) that was not contained in the original circular with the notice of meeting.

01/07/2005

LR 11.1.9

LR 11.1.7 R and LR 11.1.8 G will apply to the variation or novation of an existing agreement between the listed company and a related party whether or not, at the time the original agreement was entered into, that party was a related party.

01/07/2005

Modified requirements for smaller related party transactions

LR 11.1.10

(1) This rule applies to a related party transaction if each of the percentage ratios is less than 5%, but one or more of the percentage ratios exceeds 0.25%.
(2) Where this rule applies, LR 11.1.7 R does not apply but instead the listed company must before entering into the transaction or arrangement (as the case may be):

(a) inform the FSA in writing of the details of the proposed transaction or arrangement;
(b) provide the FSA with written confirmation from an independent adviser acceptable to the FSA that the terms of the proposed transaction or arrangement with the related party are fair and reasonable as far as the shareholders of the listed company are concerned; and
(c) undertake in writing to the FSA to include details of the transaction or arrangement in the listed company's next published annual accounts, including, if relevant, the identity of the related party, the value of the consideration for the transaction or arrangement and all other relevant circumstances.

01/07/2005
Future version of LR 11.1.10 after 31/12/2012

Aggregation of transactions in any 12 month period

LR 11.1.11

(1) If a listed company enters into transactions or arrangements with the same related party (and any of its associates) in any 12 month period and the transactions or arrangements have not been approved by shareholders the transactions or arrangements must be aggregated.
(2) If any percentage ratio is 5% or more for the aggregated transactions or arrangements, the listed company must comply with LR 11.1.7 R in respect of the latest transaction or arrangement.
Note: LR 13.6.1R (8) requires details of each of the transactions or arrangements being aggregated to be included in the circular.
(3) If transactions or arrangements that are small transactions under LR 11 Annex 1 paragraph 1 are aggregated under paragraph (1) of this rule and for the aggregated small transactions each of the percentage ratios is less than 5%, but one or more of the percentage ratios exceeds 0.25%, the listed company must comply with:

(a) LR 11.1.10R (2)(b) in respect of the latest small transaction; and
(b) LR 11.1.10R (2)(a) and LR 11.1.10R (2)(c) in respect of the aggregated small transactions.

01/07/2005
Future version of LR 11.1.11 after 01/10/2012

LR 11 Annex 1

Transactions to which related party transaction rules do not apply

01/07/2005

LR 11 Annex 1.1

Small transaction

A transaction or arrangement where each of the applicable percentage ratios is equal to or less than 0.25%.

Issue of new securities and sale of treasury shares

Transaction agreed before person became a related party

A transaction the terms of which:

(1)

were agreed at a time when no party to the transaction or person who was to receive the benefit of the transaction was a related party; and

(2)

have not been amended, or required the exercise of discretion by the listed company under those terms, since the party or person become a related party.

Issue of new securities and sale of treasury shares

A transaction that consists of:

(1)

the take up by a related party of new securities or treasury shares under its entitlement in a pre-emptive offering;

(2)

an issue of new securities made under the exercise of conversion or subscription rights attaching to a listed class of securities.

Employees' share schemes and long-term incentive schemes

The:

(1)

receipt of any asset (including cash or securities of the listed company or any of its subsidiary undertakings) by a director of the listed company, its parent undertaking or any of its subsidiary undertakings; or

(2)

grant of an option or other right to a director of the listed company, its parent undertaking, or any of its subsidiary undertakings to acquire (whether or not for consideration) any asset (including cash or new or existing securities of the listed company or any of its subsidiary undertakings); or

(3)

provision of a gift or loan to the trustees of an employee benefit trust to finance the provision of assets as referred to in (1) or (2);

in accordance with the terms of an employees' share scheme or a long-term incentive scheme.

Credit

A grant of credit (including the lending of money or the guaranteeing of a loan):

(1)

to the related party on normal commercial terms;

(2)

to a director for an amount and on terms no more favourable than those offered to employees of the group generally; or

(3)

by the related party on normal commercial terms and on an unsecured basis.

Directors' indemnities and loans

(1)

A transaction that consists of:

(a)

granting an indemnity to a director of the listed company (or any of its subsidiary undertakings) if the terms of the indemnity are in accordance with those specifically permitted to be given to a director under the Companies Act 2006;

(b)

maintaining a contract of insurance if the insurance is in accordance with that specifically permitted to be maintained for a director under that the Companies Act 2006 (whether for a director of the listed company or for a director of any of its subsidiary undertakings); or

(c)

a loan or assistance to a director by a listed company or any of its subsidiary undertakings if the terms of the loan or assistance are in accordance with those specifically permitted to be given to a director under section 204 or 205 of the Companies Act 2006.

(2)

Paragraph (1) applies to a listed company that is not subject to the Companies Act 2006 if the terms of the indemnity or contract of insurance are in accordance with those that would be specifically permitted under that Act (if it applied).

Underwriting

(1)

The underwriting by a related party of all or part of an issue of securities by the listed company (or any of its subsidiary undertakings) if the consideration to be paid by the listed company (or any of its subsidiary undertakings) for the underwriting:

(a)

is no more than the usual commercial underwriting consideration; and

(b)

is the same as that to be paid to the other underwriters (if any).

(2)

Paragraph (1) does not apply to the extent that a related party is underwriting securities which it is entitled to take up under an issue of securities.

[deleted]

Joint investment arrangements

(1)

An arrangement where a listed company, or any of its subsidiary undertakings, and a related party each invests in, or provides finance to, another undertaking or asset if the following conditions are satisfied:

(a)

the amount invested, or provided, by the related party is not more than 25% of the amount invested, or provided, by the listed company or its subsidiary undertaking (as the case may be) and the listed company has advised the FSA in writing that this condition has been met; and

(b)

an independent adviser acceptable to the FSA has provided a written opinion to the FSA stating that the terms and circumstances of the investment or provision of finance by the listed company or its subsidiary undertakings (as the case may be) are no less favourable than those applying to the investment or provision of finance by the related party.

(2)

The advice in paragraph (1)(a) and the opinion in paragraph (1)(b) must be provided before the investment is made or the finance is provided.

Insignificant subsidiary undertaking

(1)

A transaction or arrangement where each of the conditions in paragraphs (2) to (6) (as far as applicable) is satisfied.

(2)

The party to the transaction or arrangement is only a related party because:

(a)

it is (or was within the 12 months before the date of the transaction or arrangement) a substantial shareholder or its associate; or

(b)

it is a person who is (or was within the 12 months before the date of the transaction or arrangement) a director or shadow director or his associate;

of a subsidiary undertaking or subsidiary undertakings of the listed company that has, or if there is more than one subsidiary undertaking that have in aggregate, contributed less than 10% of the profits of, and represented less than 10% of the assets of, the listed company for the relevant period.

(3)

The subsidiary undertaking or each of the subsidiary undertakings (as the case may be) have been in the listed company's group for 1 year or more.

(4)

In paragraph (2), "relevant period" means:

(a)

if the subsidiary undertaking or each of the subsidiary undertakings (as the case may be) have been part of the listed company's group for more than 1 year but less than 3 years, each of the financial years before the date of the transaction or arrangement for which accounts have been published; and

(b)

if the subsidiary undertaking or any of the subsidiary undertakings (as the case may be) have been part of the listed company's group for 3 years or more, each of the 3 financial years before the date of the transaction or arrangement for which accounts have been published.

(5)

If the subsidiary undertaking or any of the subsidiary undertakings (as the case may be) are themselves party to the transaction or arrangement or if securities in the subsidiary undertaking or any of the subsidiary undertakings or their assets are the subject of the transaction or arrangement, then the ratio of consideration to market capitalisation of the listed company is less than 10%.

(6)

In this rule, the figures to be used to calculate profits, assets and consideration to market capitalisation are the same as those used to classify profits, assets and consideration to market capitalisation in LR 10 Annex 1 (as modified or added to by LR 10.7 where applicable).

Export chapter as

Legal Instruments that change this Chapter Related party transactions

LR 12

Dealing in own securities
and treasury shares

LR 12.1

Application

01/07/2005

Application

LR 12.1.1

This chapter applies to a company that has a primary listing of equity securities or preference shares

01/07/2005
Future version of LR 12.1.1 after 06/04/2010

LR 12.1.2

This chapter contains rules applicable to a listed company that:

(1) purchases its own equity shares; or
(2) purchases its own securities other than equity shares; or
(3) sells or transfers treasury shares; or
(4) purchases or redeems its own securities during a prohibited period; or
(5) purchases its own securities from a related party.

01/07/2005

Exceptions

LR 12.1.3

LR 12.2 to LR 12.5 do not apply to a transaction entered into:

(1) in the ordinary course of business by a securities dealing business; or
(2) on behalf of third parties either by the company or any member of its group;

if the listed company has established and maintains effective Chinese walls between those responsible for any decision relating to the transaction and those in possession of inside information relating to the listed company.

01/07/2005

LR 12.2

Prohibition on purchase of own securities

01/07/2005

LR 12.2.1

A listed company must not purchase or redeem (or make any early redemptions of) its own securities and must ensure that no purchases in its securities are effected on its behalf or by any member of its group during a prohibited period unless:

(1) the company has in place a buy-back programme where the dates and quantities of securities to be traded during the relevant period are fixed and have been disclosed in a notification made in accordance with LR 12.4.4 R; or
(2) the company has in place a buy-back programme managed by an independent third party which makes its trading decisions in relation to the company's securities independently of, and uninfluenced by, the company; or
(3) the company is purchasing or redeeming securities other than shares or securities whose price or value would be likely to be significantly affected by the publication of the information giving rise to the prohibited period; or
(4) the company is redeeming securities (other than equity shares) which, at the time of issue, set out:

(a) the date of redemption;
(b) the number of securities to be redeemed or the formula used to determine that number; and
(c) the redemption price or the formula used to determine the price.

01/07/2005
Future version of LR 12.2.1 after 01/10/2012

LR 12.3

Purchase from a related party

01/07/2005

LR 12.3.1

Where a purchase by a listed company of its own equity securities or preference shares is to be made from a related party, whether directly or through intermediaries, LR 11 (Related party transactions) must be complied with unless:

(1) a tender offer is made to all holders of the class of securities; or
(2) in the case of a market purchase pursuant to a general authority granted by shareholders, it is made without prior understanding, arrangement or agreement between the listed company and any related party.

01/07/2005

LR 12.4

Purchase of own equity shares

01/07/2005

Purchases of less than 15%

LR 12.4.1

Unless a tender offer is made to all holders of the class, purchases by a listed company of less than 15% of any class of its equity shares (excluding treasury shares) pursuant to a general authority granted by shareholders, may only be made if the price to be paid is not more than the higher of:

(1) 5% above the average market value of the company's equity shares for the 5 business days prior to the day the purchase is made; and
(2) that stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation. [Note: This Article is reproduced at MAR 1 Ann 1]

01/07/2005

Purchases of 15% or more

LR 12.4.2

Purchases by a listed company of 15% or more of any class of its equity shares (excluding treasury shares) must be by way of a tender offer to all shareholders of that class.

01/07/2005
Future version of LR 12.4.2 after 01/10/2012

LR 12.4.3

Where a series of purchases are made pursuant to a general authority granted by shareholders, which in aggregate amount to 15% or more of the number of equity shares of the relevant class in issue immediately following the shareholders meeting at which the general authority to purchase was granted, a tender offer need only be made in respect of any purchase that takes the aggregate to or above that level. Purchases that have been specifically approved by shareholders are not to be taken into account in determining whether the 15% level has been reached.

01/07/2005

Notification prior to purchase

LR 12.4.4

(1) Any decision by the board to submit to shareholders a proposal for the listed company to be authorised to purchase its own equity shares must be notified to a RIS as soon as possible.
(2) A notification required by paragraph (1) must set out whether the proposal relates to:

(a) specific purchases and if so, the names of the persons from whom the purchases are to be made; or
(b) a general authorisation to make purchases.

(3) The requirement set out in paragraph (1) does not apply to a decision by the board to submit to shareholders a proposal to renew an existing authority to purchase own equity shares.

01/07/2005

LR 12.4.5

A listed company must notify a RIS as soon as possible of the outcome of the shareholders' meeting to decide the proposal described in LR 12.4.4 R.

01/07/2005

Notification of purchases

LR 12.4.6

Any purchase of a listed company's own equity shares by or on behalf of the company or any other member of its group must be notified to a RIS as soon as possible, and in any event by no later than 7:30 a.m. on the business day following the calendar day on which the purchase occurred. The notification must include:

(1) the date of purchase;
(2) the number of equity shares purchased;
(3) the purchase price for each of the highest and lowest price paid, where relevant;
(4) the number of equity shares purchased for cancellation and the number of equity shares purchased to be held as treasury shares; and
(5) where equity shares were purchased to be held as treasury shares, a statement of:

(a) the total number of treasury shares of each class held by the company following the purchase and non-cancellation of such equity shares; and
(b) the number of equity shares of each class that the company has in issue less the total number of treasury shares of each class held by the company following the purchase and non-cancellation of such equity shares.

01/07/2005

Consent of other classes

LR 12.4.7

Unless LR 12.4.8 R applies, a company with listed securities convertible into, or exchangeable for, or carrying a right to subscribe for equity shares of the class proposed to be purchased must (prior to entering into any agreement to purchase such shares):

(1) convene a separate meeting of the holders of those securities; and
(2) obtain their approval for the proposed purchase of equity shares by an extraordinary resolution.

01/07/2005
Future version of LR 12.4.7 after 06/02/2008

LR 12.4.8

LR 12.4.7 R does not apply if the trust deed or terms of issue of the relevant securities authorise the listed company to purchase its own equity shares.

01/07/2005

LR 12.4.9

A circular convening a meeting required by LR 12.4.7 R must include (in addition to the information in LR 13 (Contents of circulars)):

(1) a statement of the effect on the conversion expectations of holders in terms of attributable assets and earnings, on the basis that the company exercises the authority to purchase its equity shares in full at the maximum price allowed (where the price is to be determined by reference to a future market price the calculation must be made on the basis of market prices prevailing immediately prior to the publication of the circular and that basis must be disclosed); and
(2) any adjustments to the rights of the holders which the company may propose (in such a case, the information required under paragraph (1) must be restated on the revised basis).

06/08/2007
Past version of LR 12.4.9 before 06/08/2007

Other similar transactions

LR 12.4.10

A listed company intending to enter into a transaction that would have an effect on the company similar to that of a purchase of own equity shares should consult with the FSA to discuss the application of LR 12.4.

01/07/2005

LR 12.5

Purchase of own securities other than equity shares

01/07/2005

LR 12.5.1

Except where the purchases will consist of individual transactions made in accordance with the terms of issue of the relevant securities, where a listed company intends to purchase any of its equity securities (other than equity shares) or preference shares it must:

(1) ensure that no dealings in the relevant securities are carried out by or on behalf of the company or any member of its group until the proposal has either been notified to a RIS or abandoned; and
(2) notify a RIS of its decision to purchase.

Notification of purchases, early redemptions and cancellations

LR 12.5.2

Any purchases, early redemptions or cancellations of a company's own listed equity securities (other than equity shares) or preference shares, by or on behalf of the company or any other member of its group must be notified to a RIS when an aggregate of 10% of the initial amount of the relevant class of securities has been purchased, redeemed or cancelled, and for each 5% in aggregate of the initial amount of that class acquired thereafter.

01/07/2005
Future version of LR 12.5.2 after 06/04/2010

LR 12.5.3

The notification required by LR 12.5.2 R must be made as soon as possible and in any event no later than 7:30 a.m. on the business day following the calendar day on which the relevant threshold is reached or exceeded. The notification must state:

(1) the amount of securities acquired, redeemed or cancelled since the last notification; and
(2) whether or not the securities are to be cancelled and the number of that class of securities that remain outstanding.

01/07/2005

LR 12.5.4

Where a listed company purchases or makes an early redemption of shares other than equity shares, the notification required by LR 12.5.2 R must include the matters set out in LR 12.5.3 R and, in addition, the number of the shares purchased or redeemed early for cancellation and the number purchased to be held as treasury shares.

01/07/2005

Period between purchase and notification

LR 12.5.5

In circumstances where the purchase is not being made pursuant to a tender offer and the purchase causes a relevant threshold in LR 12.5.2 R to be reached or exceeded, no further purchases may be undertaken until after a notification has been made in accordance with LR 12.5.2 R to LR 12.5.4 R.

01/07/2005

Convertible securities

LR 12.5.6

In the case of securities which are convertible into, exchangeable for, or carry a right to subscribe for equity shares, unless a tender offer is made to all holders of the class, purchases must not be made at a price higher than 5% above the average of the market values for the securities for the five business days immediately prior to the date of purchase.

01/07/2005

Warrants and options

LR 12.5.7

Where, within a period of 12 months, a listed company purchases warrants or options over its own equity shares which, on exercise, convey the entitlement to equity shares representing 15% or more of the company's existing issued shares (excluding treasury shares), the company must send to its shareholders a circular containing the following information:

(1) a statement of the directors' intentions regarding future purchases of the company's warrants and options;
(2) the number and terms of the warrants or options acquired and to be acquired and the method of acquisition;
(3) where warrants or options have been, or are to be, acquired from specific parties, a statement of the names of those parties and all material terms of the acquisition; and
(4) details of the prices to be paid.

01/07/2005

LR 12.6

Treasury shares

01/07/2005

Prohibition on sales or transfers of treasury shares

LR 12.6.1

Subject to LR 12.6.2 R, sales for cash, or transfers for the purposes of, or pursuant to, an employees' share scheme, of treasury shares must not be made during a prohibited period.

01/07/2005

Exemptions

LR 12.6.2

LR 12.6.1 R does not apply to the following sales or transfers by a listed company of treasury shares:

(1) transfers of treasury shares in connection with the operation of an employees' share scheme where the transfer facilitates dealings that do not fall within the provisions of the Model Code; or
(2) sales or transfers by the company of treasury shares (other than equity shares) of a class whose price or value would not be likely to be significantly affected by the publication of the information giving rise to the prohibited period.

06/08/2007
Past version of LR 12.6.2 before 06/08/2007

Notification of capitalisation issues and of sales, transfers and cancellations of treasury shares

LR 12.6.3

If by virtue of its holding treasury shares, a listed company is allotted shares as part of a capitalisation issue, the company must notify a RIS as soon as possible and in any event by no later than 7:30 a.m. on the business day following the calendar day on which allotment occurred of the following information:

(1) the date of the allotment;
(2) the number of shares allotted;
(3) a statement as to what number of shares allotted have been cancelled and what number is being held as treasury shares; and
(4) where shares allotted are being held as treasury shares, a statement of:

(a) the total number of treasury shares of each class held by the company following the allotment; and
(b) the number of shares of each class that the company has in issue less the total number of treasury shares of each class held by the company following the allotment.

01/07/2005

LR 12.6.4

Any sale for cash, transfer for the purposes of or pursuant to an employees' share scheme or cancellation of treasury shares by a listed company must be notified to a RIS as soon as possible and in any event by no later than 7:30 a.m. on the business day following the calendar day on which the sale, transfer or cancellation occurred. The notification must include:

(1) the date of the sale, transfer or cancellation;
(2) the number of shares sold, transferred or cancelled;
(3) the sale or transfer price for each of the highest and lowest prices paid, where relevant; and
(4) a statement of:

(a) the total number of treasury shares of each class held by the company following the sale, transfer or cancellation; and
(b) the number of shares of each class that the company has in issue less the total number of treasury shares of each class held by the company following the sale, transfer or cancellation.

01/07/2005
Future version of LR 12.6.4 after 01/10/2012

Export chapter as

Legal Instruments that change this Chapter Dealing in own securities and treasury shares

LR 13

Contents of circulars

LR 13.1

Preliminary

01/07/2005

Application

LR 13.1.1

This chapter applies to a company that has a primary listing of equity securities.

01/07/2005
Future version of LR 13.1.1 after 06/04/2010

Listed company to ensure circulars comply with chapter

LR 13.1.2

A listed company must ensure that circulars it issues to holders of its listed equity securities comply with the requirements of this chapter.

01/07/2005
Future version of LR 13.1.2 after 06/04/2010

Incorporation by reference

LR 13.1.3

Information may be incorporated in a circular by reference to relevant information contained in:

(1) a prospectus or listing particulars; or
(2) any other published document that has been filed with the FSA.

01/07/2005
Future version of LR 13.1.3 after 01/10/2012

LR 13.1.4

Information incorporated by reference must be the latest available to the listed company.

01/07/2005

LR 13.1.5

Information required by LR 13.3.1R (1)(2) must not be incorporated in the circular by reference to information contained in another document.

01/07/2005

LR 13.1.6

When information is incorporated by reference, a cross reference list must be provided in the circular to enable security holders to identify easily specific items of information. The cross reference list must specify where the information can be accessed by security holders.

01/07/2005

LR 13.2

Approval of circulars

01/07/2005

Circulars to be approved

LR 13.2.1

A listed company must not circulate or publish a circular unless it has been approved by the FSA.

01/07/2005

Circulars not requiring approval

LR 13.2.2

A circular does not need to be approved under LR 13.2.1 R if:

(1) it is of a type referred to in LR 13.8 or only relates to a proposed change of name or, in any other case, the FSA has agreed that it does not need to be approved;
(2) it complies with LR 13.3 and also, if it is a circular referred to in LR 13.8, any relevant requirements in that section; and
(3) neither it, nor the transaction or matter to which it relates, has unusual features.

01/07/2005
Future version of LR 13.2.2 after 01/10/2012

When circulars about purchase of own equity securitiesneed approval

LR 13.2.3

(1) A circular relating to a resolution to give a listed company authority to purchase its own equity securities must be approved by the FSA under LR 13.2.1 R if:

(a) the purchase by the company of its own securities is to be made from a related party (whether directly or through intermediaries); or
(b) the exercise in full of the authority sought would result in the purchase of 25% or more of the company's issued equity shares (excluding treasury shares).

(2) A circular referred to in paragraph (1)(a) does not need to be approved if:

(a) a tender is made to all holders of the class of securities on the same terms; or
(b) for a market purchase under a general authority granted by shareholders, it is made without prior understanding, arrangement or agreement between the company and any related party.

01/07/2005
Future version of LR 13.2.3 after 06/04/2010

Approval procedures

LR 13.2.4

The following documents (to the extent applicable) must be lodged with the FSA in final form before it will approve a circular:

(1) a Sponsors Declaration for the Production of a Circular completed by the sponsor;
(2) for a class 1 circular or related party circular, a letter setting out any items of information required by this chapter that are not applicable in that particular case;
(3) the sponsor's Confirmation of Independence; and
(4) any other document that the FSA has sought in advance from the listed company or its sponsor.

01/07/2005
Future version of LR 13.2.4 after 06/04/2010

LR 13.2.5

Two copies of the following documents in draft form must be submitted at least 10 clear business days before the date on which it is intended to publish the circular:

(1) the circular; and
(2) the letters and documents referred to in LR 13.2.4R (1) and (2).

01/07/2005

LR 13.2.6

The sponsor's Confirmation of Independence in final form must be submitted at least 10 clear business days before the date on which it is intended to publish the circular.

01/07/2005
Future version of LR 13.2.6 after 06/04/2010

LR 13.2.7

If a circular submitted for approval is amended, two copies of amended drafts must be resubmitted, marked to show changes made to conform with FSA comments and to indicate other changes.

01/07/2005

Approval of circulars

LR 13.2.8

The FSA will approve a circular if it is satisfied that the requirements of this chapter are satisfied.

01/07/2005

LR 13.2.9

The FSA will only approve a circular between 9a.m. and 5.30p.m. on a business day (unless alternative arrangements are made in advance).

Note: LR 9.6.1 R requires a company to forward to the FSA two copies of all circulars issued (whether or not they require approval) for publication on the document viewing facility.

01/07/2005

LR 13.3

Contents of all circulars

01/07/2005

Contents of all circulars

LR 13.3.1

Every circular sent by a listed company to holders of its listed securities must:

(1) provide a clear and adequate explanation of its subject matter giving due prominence to its essential characteristics, benefits and risks;
(2) state why the security holder is being asked to vote or, if no vote is required, why the circular is being sent;
(3) if voting or other action is required, contain all information necessary to allow the security holders to make a properly informed decision;
(4) if voting or other action is required, contain a heading drawing attention to the document's importance and advising security holders who are in any doubt as to what action to take to consult appropriate independent advisers;
(5) if voting is required, contain a recommendation from the Board as to the voting action security holders should take for all resolutions proposed, indicating whether or not the proposal described in the circular is, in the Board's opinion, in the best interests of security holders as a whole;
(6) state that if all the securities have been sold or transferred by the addressee the circular and any other relevant documents should be passed to the person through whom the sale or transfer was effected for transmission to the purchaser or transferee;
(7) if new securities are being issued in substitution for existing securities, explain what will happen to existing documents of title;
(8) not include any reference to a specific date on which listed securities will be marked "ex" any benefit or entitlement which has not been agreed in advance with the RIE on which the company's securities are or are to be traded;
(9) if it relates to a transaction in connection with which securities are proposed to be listed, include a statement that application has been or will be made for the securities to be admitted and, if known, a statement of the following matters:

(a) the dates on which the securities are expected to be admitted and on which dealings are expected to commence;
(b) how the new securities rank for dividend or interest;
(c) whether the new securities rank equally with any existing listed securities;
(d) the nature of the document of title;
(e) the proposed date of issue;
(f) the treatment of any fractions;
(g) whether or not the security may be held in uncertificated form; and
(h) the names of the RIEs on which securities are to be traded;

(10) if a person is named in the circular as having advised the listed company or its directors, a statement that the adviser has given and has not withdrawn its written consent to the inclusion of the reference to the adviser's name in the form and context in which it is included; and
(11) if the circular relates to cancelling listing, state whether it is the company's intention to apply to cancel the securities' listing.

01/07/2005

LR 13.3.2

If another rule provides that a circular of a particular type must include specified information, then that information is (unless the contrary intention appears) in addition to the information required under this section.

01/07/2005

Pro forma financial information in certain circulars

LR 13.3.3

If a listed company includes pro forma financial information in a class 1 circular, a related party circular or a circular relating to the purchase by the company of 25% or more its issued equity shares (excluding treasury shares), it must comply with the requirements for pro forma financial information set out in the PD Regulation.

06/08/2007

LR 13.4

Class 1 circulars

01/07/2005

Class 1 circulars

LR 13.4.1

A class 1 circular must also include the following information:

(1) the information given in the notification (see LR 10.4.1R);
(2) the information required by LR 13 Annex 1;
(3) the information required by LR 13.5 (if applicable); and
(4) a declaration by its directors in the following form (with appropriate modifications):
"The directors of [the company], whose names appear on page [ ], accept responsibility for the information contained in this document. To the best of the knowledge and belief of the directors (who have taken all reasonable care to ensure that such is the case) the information contained in this document is in accordance with the facts and does not omit anything likely to affect the import of such information.";
(5) a statement of the effect of the acquisition or disposal on the group's earnings and assets and liabilities; and
(6) if a statement or report attributed to a person as an expert is included in a circular (other than a statement or report incorporated by reference from a prospectus or listing particulars), a statement to the effect that the statement or report is included, in the form and context in which it is included, with the person's consent.

01/07/2005
Future version of LR 13.4.1 after 01/10/2012

LR 13.4.1A

The information necessary under LR 13.3.1R (3) includes all the material terms of the class 1 transaction including the consideration.

06/08/2007

LR 13.4.2

If a class 1 circular contains a modified accountant's report, as described in LR 13.5.25 R, the class 1 circular must set out:

(1) whether the modification is significant to shareholders;
(2) if the modification is significant to shareholders, the reason for its significance; and
(3) a statement from the directors explaining why they are able to recommend the proposal set out in the class 1 circular notwithstanding the modified accountant's report.

01/07/2005
Future version of LR 13.4.2 after 01/10/2012

Takeover offers

LR 13.4.3

(1) If a class 1 circular relates to a takeover offer which is recommended by the offeree's board and the listed company has had access to due diligence information on the offeree at the time the class 1 circular is published, the listed company must prepare and publish the working capital statement on the basis that the acquisition has taken place.
(2) If a class 1 circular relates to a takeover offer which has not been recommended by the offeree's board or the listed company has not had access to due diligence information on the offeree at the time the class 1 circular is published, then the listed company must comply with paragraphs (3) to (6).
(3) The listed company must prepare and publish the working capital statement on the listed company on the basis that the acquisition has not taken place. The working capital statement prepared on the basis that the acquisition has taken place must be updated and published and sent to shareholders within 28 days of the offer becoming or being declared wholly unconditional. The circular must state that the statements on a combined basis will be made available as soon as possible.
(4) Other information on the offeree required by LR 13 Annex 1 should be disclosed in the class 1 circular on the basis of information published or made available by the offeree and of which the listed company is aware and is free to disclose.
(5) If the takeover offer becomes unconditional, any change or addition to the information disclosed which is material in relation to the listed company, should be disclosed in a circular published (in the absence of exceptional circumstances) within 28 days after the offer becoming or being declared wholly unconditional.
(6) If the takeover offer has been recommended but the listed company does not have access to due diligence information on the offeree, the listed company must disclose in the class 1 circular why access has not been given to that information.

01/07/2005

Acquisition or disposal of property

LR 13.4.4

If a class 1 transaction relates to:

(1) the acquisition or disposal of property; or
(2) the acquisition of a property company that is not listed;

the class 1 circular must include a property valuation report.

01/07/2005

LR 13.4.5

If a listed company makes significant reference to the value of a property in a class 1 circular, the class 1 circular must include a property valuation report.

01/07/2005

Acquisition or disposal of mineral resources

LR 13.4.6

If a class 1 transaction relates to an acquisition or disposal of mineral resources the class 1 circular must include:

(1) a mineral expert's report; and
(2) a glossary of the technical terms used in the mineral expert's report.

01/07/2005

LR 13.4.7

For a disposal, the FSA may modify the information requirements in LR 13.4.6 R if the information would not provide significant additional information.

01/07/2005
Future version of LR 13.4.7 after 01/10/2012

Acquisition of a scientific research based company or related assets

LR 13.4.8

If a class 1 transaction relates to the acquisition of a scientific research based company or related assets, the class 1 circular must contain an explanation of the transaction's impact on the acquirer's business plan and the information set out in Section 1c of Part III (Scientific research based companies) of the CESR recommendations.

LR 13.5

Financial information in Class 1 Circulars

01/07/2005

LR 13.5.1

Financial information, as set out in this section, must be included by a listed company in a class 1 circular if:

(1) the listed company is seeking to acquire an interest in a target which will result in a consolidation of the target's assets and liabilities with those of the listed company; or
(2) the listed company is seeking to dispose of an interest in a target which will result in the assets and liabilities no longer being consolidated; or
(3) the target ("A") has itself acquired a target ("B") and:

(a) A acquired B within the three year reporting period set out in LR 13.5.13R (1) or after the date of the last published accounts; and
(b) the acquisition of B, at the date of its acquisition by A, would have been classified as a class 1 acquisition in relation to the listed company at the date of acquisition of A by the listed company.

01/07/2005
Future version of LR 13.5.1 after 01/10/2012

LR 13.5.2

A listed company that is entering into a class 1 transaction which does not fall within LR 13.5.1 R must include in a class 1 circular such financial information as the FSA may specify.

01/07/2005

LR 13.5.3

LR 13.5.1 R will not normally apply to a property company making an acquisition or disposal of property.

01/07/2005

Form of accounting information

LR 13.5.4

(1) A listed company must present all financial information that is disclosed in a class 1 circular in a form that is consistent with the accounting policies adopted in its own latest annual consolidated accounts.
(2) The requirement set out in paragraph (1) does not apply to financial information presented in accordance with LR 13.5.36 R.

01/07/2005
Future version of LR 13.5.4 after 01/10/2012

LR 13.5.5

Accounting policies include accounting standards and accounting disclosures.

01/07/2005

Source of information

LR 13.5.6

A listed company must cite the source of all financial information that it discloses in a class 1 circular.

01/07/2005

LR 13.5.7

In complying with LR 13.5.6 R a listed company should:

(1) state whether the financial information was extracted from accounts, internal financial accounting records, internal management accounting records, an external or other source;
(2) state whether financial information that was extracted from audited accounts was extracted without material adjustment; and
(3) indicate which aspects of the financial information relate to:

(a) historical financial information;
(b) forecast or estimated financial information; or
(c) pro forma financial information prepared in accordance with Annex 1 and Annex 2 of the PD Regulation;

with reference made to where the basis of presentation can be found.

01/07/2005

LR 13.5.8

If financial information has not been extracted directly from audited accounts, the class 1 circular must:

(1) set out the basis and assumptions on which the financial information has been prepared; and
(2) include a statement that the financial information is unaudited or not reported on by an accountant.

01/07/2005

LR 13.5.9

A listed company must provide investors with all necessary information to understand the context and relevance of non-statutory figures, including a reconciliation to statutory equivalents.

01/07/2005

Prominence of information

LR 13.5.10

A listed company must give audited historical financial information greater prominence in a class 1 circular than any forecast, estimated, pro forma or non-statutory financial information.

01/07/2005

Summary of financial information

LR 13.5.11

A listed company that provides a summary of financial information in a class 1 circular must include in the circular a statement that investors should read the whole document and not rely solely on the summarised financial information.

01/07/2005

Financial information table

LR 13.5.12

A listed company that is required by LR 13.5.1 R to produce financial information in a class 1 circular must include in the circular a financial information table.

01/07/2005
Future version of LR 13.5.12 after 01/10/2012

Financial information table: reporting period

LR 13.5.13

A financial information table must cover one of the following reporting periods:

(1) a period of three years up to the end of the latest financial period for which the target or its parent has prepared audited accounts;
(2) a lesser period than the period set out in paragraph (1) if the target's business has been in existence for less than three years; or
(3) for a class 1 disposal, the period set out in LR 13.5.19 R.

01/07/2005
Future version of LR 13.5.13 after 01/10/2012

Financial information table: class 1 acquisitions

LR 13.5.14

A listed company must include, in a financial information table, financial information that covers:

(1) the target; and
(2) the target's subsidiary undertakings, if any.

01/07/2005

LR 13.5.15

A listed company must include in a separate financial information table, financial information that covers those undertakings which are to become the target's subsidiary undertakings, if applicable.

01/07/2005

LR 13.5.16

(1) This rule applies if a listed company is seeking to acquire an interest in a target ("A") that has itself acquired a target ("B") and:

(a) A acquired B within the three year reporting period set out in LR 13.5.13R (1) or after the date of the last published accounts; and
(b) the acquisition of B, at the date of its acquisition by A, would have been classified as a class 1 acquisition in relation to the listed company at the date of acquisition of A by the listed company.

(2) A listed company must include in a financial information table pre-acquisition financial information on B that covers the period from the commencement of the three year reporting period set out in LR 13.5.13R (1) up to the date of acquisition by A.

01/07/2005

LR 13.5.17

If the target made a series of acquisitions that:

(1) are not caught individually by LR 13.5.16 R; and
(2) were made during or subsequent to the reporting period set out in LR 13.5.13R (1) or (2);

the FSA may require additional financial information about those acquisitions to be included in the financial information table.

01/07/2005

LR 13.5.18

A listed company must ensure that a financial information table includes, for each of the periods covered by the table:

(1) a balance sheet and its explanatory notes;
(2) an income statement and its explanatory notes;
(3) a cash flow statement and its explanatory notes;
(4) a statement showing either all changes in equity or changes in equity other than those arising from capital transactions with owners and distributions to owners;
(5) the accounting policies; and
(6) any additional explanatory notes.

01/07/2005

Financial information table: class 1 disposal

LR 13.5.19

(1) In the case of a class 1 disposal a financial information table must include, for the target:

(a) the last audited consolidated balance sheet; and
(b) the audited consolidated income statements for the last three years;

if audited accounts have been prepared for the target.
(2) If audited accounts have not been prepared for the target, the information required by paragraph (1) must be extracted from the consolidation schedules that underlie the listed company's audited consolidated accounts. The income statements must be drawn up to at least the level of profit or loss for the period.
(3) If the target has not been owned by the listed company for the entire reporting period set out in paragraph (1)(b), the information required by paragraph (1) may be extracted from the target's accounting records.

01/07/2005

LR 13.5.20

If a dispensation of LR 13.5.19 R has been granted because it is not possible to provide a meaningful allocation of costs, such as interest and tax, the class 1 circular should contain a statement to this effect.

01/07/2005

Financial information table: accountant's opinion

LR 13.5.21

A financial information table must be accompanied by an accountant's opinion unless LR 13.5.27 R, LR 13.5.28 R or LR 13.5.29 G applies.

01/07/2005
Future version of LR 13.5.21 after 01/10/2012

LR 13.5.22

An accountant's opinion must set out:

(1) whether, for the purposes of the class 1 circular, the financial information table gives a true and fair view of the financial matters set out in it; and
(2) whether the financial information table has been prepared in a form that is consistent with the accounting policies adopted in the listed company's latest annual accounts.

01/07/2005
Future version of LR 13.5.22 after 01/10/2012

LR 13.5.23

An accountant's opinion must be given by an independent accountant who is qualified to act as an auditor.

01/07/2005

LR 13.5.24

An accountant will be independent if he or she complies with the standards and guidelines on independence issued by its national accountancy and auditing bodies.

01/07/2005

LR 13.5.25

If an accountant's report, which contains the accountant's opinion required by LR 13.5.21 R, is modified details of all material matters must be set out in the class 1 circular, including:

(1) all the reasons for the modification; and
(2) a quantification of the effects, if both relevant and practicable.

01/07/2005
Future version of LR 13.5.25 after 01/10/2012

LR 13.5.26

If the accounts of a target that falls within LR 13.5.14 R to LR 13.5.16 R contain a modified auditor's report, details of the material matters giving rise to the modification must be set out in the class 1 circular.

01/07/2005
Future version of LR 13.5.26 after 01/10/2012

Accountant's opinion: acquisitions of publicly traded companies

LR 13.5.27

(1) This rule applies if the target is:

(a) admitted to trading; or
(b) a company whose securities are listed on an overseas investment exchange or admitted to trading on an overseas regulated market;

and a material adjustment needs to be made to the target's financial statements to achieve consistency with the listed company's accounting policies.
(2) A listed company must include the following in the class 1 circular:

(a) a reconciliation of financial information on the target, for all periods covered by the financial information table, on the basis of the listed company's accounting policies;
(b) an accountant's opinion that sets out:

(i) whether the reconciliation of financial information in the financial information table has been properly compiled on the basis stated; and
(ii) whether the adjustments are appropriate for the purpose of presenting the financial information (as adjusted) on a basis consistent in all material respects with the listed company's accounting policies.

01/07/2005
Future version of LR 13.5.27 after 01/10/2012

When an accountant's opinion is not required

LR 13.5.28

An accountant's opinion is not required if the target is:

(1) admitted to trading; or
(2) a company whose securities are listed on an overseas investment exchange or admitted to trading on an overseas regulated market;

and no material adjustment needs to be made to the target's financial statements to achieve consistency with the listed company's accounting policies.

01/07/2005

LR 13.5.29

In the case of a class 1 disposal a listed company is not required to include an accountant's opinion with the financial information table.

01/07/2005

Half-yearly and quarterly financial information

LR 13.5.30

If the target of an acquisition has published half-yearly or quarterly financial information subsequent to the period set out in LR 13.5.13R (1) or (2), such financial information must be:

(1) reproduced in the class 1 circular; and
(2) reconciled in accordance with LR 13.5.27R (2), if applicable.

01/07/2005
Future version of LR 13.5.30 after 01/10/2012

Pro forma financial information

LR 13.5.31

LR 13.3.3 R sets out requirements for pro forma information in a class 1 circular.

06/08/2007
Past version of LR 13.5.31 before 06/08/2007

Profit forecasts and profit estimates

LR 13.5.32

If a listed company includes a profit forecast or a profit estimate in a class 1 circular it must:

(1) comply with the requirements for a profit forecast or profit estimate set out in Annex 1 of the PD Regulation except that a listed company does not need to include a report on the forecast or estimate from an accountant in the class 1 circular; and
(2) include a statement confirming that the profit forecast or profit estimate has been properly compiled on the basis of assumptions stated and that the basis of accounting is consistent with the accounting policies of the listed company.

01/07/2005

LR 13.5.33

If, prior to the class 1 transaction, a profit forecast or profit estimate was published that:

(1) relates to the listed company, a significant part of the listed company group, or the target; and
(2) is still outstanding;

the listed company must include that profit forecast or profit estimate in the class 1 circular or include an explanation of why the profit forecast or profit estimate is no longer valid.

01/07/2005
Future version of LR 13.5.33 after 01/10/2012

LR 13.5.34

A listed company should consider LR 9.2.18 R regarding information that must be published after a class 1 transaction.

01/07/2005

LR 13.5.35

LR 13.5.32 R and LR 13.5.33 R do not apply to class 1 disposals.

01/07/2005

Subsequent publication of unaudited financial information

LR 13.5.36

(1) A listed company that publishes unaudited financial information in a class 1 circular must:

(a) reproduce that financial information in its next annual report and accounts;
(b) produce and disclose in the annual report and accounts the actual figures for the same period covered by the information reproduced under paragraph (a); and
(c) provide an explanation of the difference, if there is a difference of 10% or more between the figures required by paragraph (b) and those reproduced under paragraph (a).

(2) Paragraph (1) does not apply to:

(a) pro forma financial information prepared in accordance with Annex 1 and Annex 2 of the PD Regulation; or
(b) any preliminary statements of annual results or half-yearly or quarterly reports that are reproduced in the class 1 circular; or
(c) any additional analysis of financial information that is set out in a financial information table.

01/07/2005

LR 13.6

Related party circulars

01/07/2005

Related party circulars

LR 13.6.1

A related party circular must also include:

(1) in all cases the following information referred to in the PD Regulation relating to the company:
Paragraph of Annex 1 of the PD Regulation;

(a) Annex 1 item 5.1.1 - Issuer name;
(b) Annex 1 item 5.1.4 - Issuer address;
(c) Annex 1 item 18.1 - Major shareholders;
(d) Annex 1 item 20.9 - Significant changes;
(e) Annex 1 item 22 - Material contracts (if it is information which shareholders of the company would reasonably require to make a properly informed assessment of how to vote);
(f) Annex 1 item 24 - Documents on display;

(2) for a transaction or arrangement where the related party is (or was within the 12 months before the transaction or arrangement), a director or shadow director, or an associate of a director or shadow director, of the company (or of any other company which is its subsidiary undertaking or parent undertaking or a fellow subsidiary undertaking) the following information referred to in the PD Regulation relating to that director:
Paragraph of Annex 1 of the PD Regulation:

(a) Annex 1 item 16.2 - Service contracts;
(b) Annex 1 item 17.2 - Directors' interests in shares;
(c) Annex 1 item 19 - Related party transactions;

(3) full particulars of the transaction or arrangement, including the name of the related party concerned and of the nature and extent of the interest of the party in the transaction or arrangement and also a statement that the reason the security holder is being asked to vote on the transaction or arrangement is because it is with a related party;
(4) for an acquisition or disposal of an asset where any percentage ratio is 25% or more and for which appropriate financial information is not available, an independent valuation;
(5) a statement by the board that the transaction or arrangement is fair and reasonable as far as the security holders of the company are concerned and that the directors have been so advised by an independent adviser acceptable to the FSA;
(6) if applicable, a statement that the related party will not vote on the relevant resolution, and that the related party has undertaken to take all reasonable steps to ensure that its associates will not vote on the relevant resolution, at the meeting;
(7) for a transaction where any percentage ratio is 25% or more, the information required to be included in a class 1 circular;
(8) if LR 11.1.11 R (Aggregation of transactions) applies, details of each of the transactions or arrangements being aggregated; and
(9) if a statement or report attributed to a person as an expert is included in a circular (other than a statement or report incorporated by reference from a prospectus or listing particulars), a statement that it is included, in the form and context in which it is included, with the consent of that person.

01/07/2005
Future version of LR 13.6.1 after 01/10/2012

LR 13.6.2

For the purposes of the statement by the board referred to in LR 13.6.1R (5):

(1) any director who is, or an associate of whom is, the related party, or who is a director of the related party should not have taken part in the board's consideration of the matter; and
(2) the statement should specify that such persons have not taken part in the board's consideration of the matter.

01/07/2005

LR 13.6.3

For the purpose of advising the directors under LR 13.6.1R (5), an independent adviser may take into account but not rely on commercial assessments of the directors.

01/07/2005
Future version of LR 13.6.3 after 31/12/2012

Pro forma financial information

LR 13.6.4

LR 13.3.3 R sets out requirements for pro forma information in related party circulars.

06/08/2007

LR 13.7

Circulars about purchase of own equity securities

01/07/2005
Future version of LR 13.7 after 06/04/2010

Purchase of own equity securities

LR 13.7.1

(1) A circular relating to a resolution proposing to give the company authority to purchase its own equity securities must also include:

(a) if the authority sought is a general one, a statement of the directors' intentions about using the authority;
(b) if known, the method by which the company intends to acquire its equity shares and the number to be acquired in that way;
(c) a statement of whether the company intends to cancel the equity shares or hold them in treasury;
(d) if the authority sought related to a proposal to purchase from specific parties, a statement of the names of the persons from whom equity shares are to be acquired together with all material terms of the proposal;
(e) details about the price, or the maximum and minimum price, to be paid; and
(f) the total number of warrants and options to subscribe for equity shares that are outstanding at the latest practicable date before the circular is published and both the proportion of issued share capital (excluding treasury shares) that they represent at that time and will represent if the full authority to buyback shares (existing and being sought) is used.

(2) If the exercise in full of the authority sought would result in the purchase of 25% or more of the company's issued equity shares (excluding treasury shares) the circular must also include the following information referred to in the PD Regulation:

(a) Annex 1 item 4 - Risk factors;
(b) Annex 1 item 12 - Trend information;
(c) Annex 1 item 17.2 - Director's interests in shares;
(d) Annex 1 item 18.1 - Major interests in shares;
(e) Annex 1 item 20.9 - Significant changes;
(f) Annex 3 item 3.1 - Working capital (this must be based on the assumption that the authority sought will be used in full at the maximum price allowed and this assumption must be stated). This information is not required to be included in a circular issued by a closed-ended investment fund.

Pro forma financial information

LR 13.7.2

LR 13.3.3 R sets out requirements for pro forma information in a circular relating to the purchase by the company of 25% or more of the company's issued equity shares (excluding treasury shares).

06/08/2007

LR 13.8

Other circulars

01/07/2005

Authority to allot shares

LR 13.8.1

A circular relating to a resolution proposing to grant the directors' authority to allot relevant securities must include:

(1) a statement of the maximum amount of relevant securities which the directors will have authority to allot and the percentage which that amount represents of the total ordinary share capital in issue (excluding treasury shares) as at the latest practicable date before publication of the circular;
(2) a statement of the number of treasury shares held by the company as at the date of the circular and the percentage which that amount represents of the total ordinary share capital in issue (excluding treasury shares) as at the latest practicable date before publication of the circular;
(3) a statement by the directors as to whether they have any present intention of exercising the authority, and if so for what purpose; and
(4) a statement as to when the authority will lapse.

01/07/2005
Future version of LR 13.8.1 after 06/04/2010

Disapplying pre-emption rights

LR 13.8.2

A circular relating to a resolution proposing to disapply the statutory pre-emption rights under section 89 of the Companies Act 1985 (Existing shareholders' right of pre-emption) must include:

(1) a statement of the maximum amount of equity securities which the disapplication will cover; and
(2) if there is a general disapplication for equity securities for cash made otherwise than to existing shareholders in proportion to their existing holdings, the percentage which the amount generally disapplied represents of the total ordinary share capital in issue as at the latest practicable date before publication of the circular.

Increase in authorised share capital

LR 13.8.3

A circular relating to a resolution proposing to increase the company's authorised share capital must include:

(1) a statement of the proposed percentage increase in the authorised share capital of the relevant class; and
(2) a statement of the reason for the increase.

01/07/2005

Reduction of capital

LR 13.8.4

A circular relating to a resolution proposing to reduce the company's capital must include a statement of the reasons for, and the effects of, the proposal.

01/07/2005
Future version of LR 13.8.4 after 06/08/2010

Capitalisation or bonus issue

LR 13.8.5

(1) A circular relating to a resolution proposing a capitalisation or bonus issue must include:

(a) the reason for the issue;
(b) a statement of the last date on which transfers were or will be accepted for registration to participate in the issue;
(c) details of the proportional entitlement; and
(d) a description of the nature and amount of reserves which are to be capitalised.

(2) Any timetable set out in the circular must have been approved by the RIE on which the company's equity securities are traded.

01/07/2005

Scrip dividend alternative

LR 13.8.6

(1) A circular containing an offer to shareholders of the right to elect to receive shares instead of all or part of a cash dividend must include:

(a) a statement of the total number of shares that would be issued if all eligible shareholders were to elect to receive shares for their entire shareholdings, and the percentage which that number represents of the equity shares (excluding treasury shares) in issue at the date of the circular;
(b) in a prominent position, details of the equivalent cash dividend foregone to obtain each share or the basis of the calculation of the number of shares to be offered instead of cash;
(c) a statement of the total cash dividend payable and applicable tax credit on the basis that no elections for the scrip dividend alternative are received;
(d) a statement of the date for ascertaining the share price used as a basis for calculating the allocation of shares;
(e) details of the proportional entitlement;
(f) details of what is to happen to fractional entitlements;
(g) the record date; and
(h) a form of election relating to the scrip dividend alternative which:

(i) is worded so as to ensure that shareholders must elect positively in order to receive shares instead of cash; and
(ii) includes a statement that the right is non-transferable.

(2) Any timetable set out in the circular must have been approved by the RIE on which the company's equity securities are traded.

01/07/2005

Scrip dividend mandate schemes/dividend reinvestment plans

LR 13.8.7

(1) A circular relating to any proposal where shareholders are entitled to complete a mandate in order to receive shares instead of future cash dividends must include:

(a) the information in LR 13.8.6R (1)(d) and (f);
(b) the basis of the calculation of the number of shares to be offered instead of cash;
(c) a statement of last date for lodging notice of participation or cancellation in order for that instruction to be valid for the next dividend;
(d) details of when adjustment to the number of shares subject to the mandate will take place;
(e) details of when cancellation of a mandate instruction will take place;
(f) a statement of whether or not the mandate instruction must be in respect of a shareholder's entire holding;
(g) the procedure for notifying shareholders of the details of each scrip dividend; and
(h) a statement of the circumstances, if known, under which the directors may decide not to offer a scrip alternative in respect of any dividend.

(2) The timetable in the circular for each scrip alternative covered by a scrip dividend mandate plan must have been approved by the RIE on which the company's equity securities are traded.

Notices of meetings

LR 13.8.8

(1) When holders of listed equity securities are sent a notice of meeting which includes any business, other than ordinary business at an annual general meeting, an explanatory circular must accompany the notice. If the other business is to be considered at or on the same day as an annual general meeting, the explanation may be incorporated in the directors' report.
(2) A circular or other document convening an annual general meeting at which only ordinary business is to be conducted and, if applicable, any other matter covered by this section is to be considered or proposed, need not be submitted to the FSA for prior approval if, for the other matter to be considered or proposed, the circular or other document complies with the relevant provisions of this section.
(3) A circular or other document convening an annual general meeting where only ordinary business is proposed does not need to comply with LR 13.3.1R (4), (5) and (6).

LR 13.8.9

A circular or other document convening an annual general meeting where special business is proposed will need to comply with all of LR 13.3.1 R (including paragraphs (4), (5) and (6) in respect of special business).

06/08/2007
Past version of LR 13.8.9 before 06/08/2007

Amendments to constitution

LR 13.8.10

A circular to shareholders about proposed amendments to the constitution must include:

(1) an explanation of the effect of the proposed amendments; and
(2) either the full terms of the proposed amendments, or a statement that the full terms will be available for inspection:

(a) from the date of sending the circular until the close of the relevant general meeting at a place in or near the City of London or such other place as the FSA may determine; and
(b) at the place of the general meeting for at least 15 minutes before and during the meeting.

01/07/2005

Employees' share scheme etc

LR 13.8.11

A circular to shareholders about the approval of an employee's share scheme or long-term incentive scheme must:

(1) include either the full text of the scheme or a description of its principal terms;
(2) include, if directors of the listed company are trustees of the scheme, or have a direct or indirect interest in the trustees, details of the trusteeship or interest;
(3) state that the provisions (if any) relating to:

(a) the persons to whom, or for whom, securities, cash or other benefits are provided under the scheme (the "participants");
(b) limitations on the number or amount of the securities, cash or other benefits subject to the scheme;
(c) the maximum entitlement for any one participant; and
(d) the basis for determining a participant's entitlement to, and the terms of, securities, cash or other benefit to be provided and for the adjustment thereof (if any) if there is a capitalisation issue, rights issue or open offer, sub-division or consolidation of shares or reduction of capital or any other variation of capital;

cannot be altered to the advantage of participants without the prior approval of shareholders in general meeting (except for minor amendments to benefit the administration of the scheme, to take account of a change in legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for participants in the scheme or for the company operating the scheme or for members of its group);
(4) state whether benefits under the scheme will be pensionable and, if so, the reasons for this; and
(5) if the scheme is not circulated to shareholders, include a statement that it will be available for inspection:

(a) from the date of sending the circular until the close of the relevant general meeting at a place in or near the City of London or such other place the FSA may determine; and
(b) at the place of the general meeting for at least 15 minutes before and during the meeting.

01/07/2005

LR 13.8.12

The resolution contained in the notice of meeting accompanying the circular must refer either to:

(1) the scheme itself (if circulated to shareholders); or
(2) the summary of its principal terms included in the circular.

01/07/2005

LR 13.8.13

The resolution approving the adoption of an employees' share scheme or long-term incentive scheme may authorise the directors to establish further schemes based on any scheme which has previously been approved by shareholders but modified to take account of local tax, exchange control or securities laws in overseas territories, provided that any shares made available under such further schemes are treated as counting against any limits on individual or overall participation in the main scheme.

01/07/2005

Amendments to employees' share scheme etc

LR 13.8.14

A circular to shareholders about proposed amendments to an employees' share scheme or a long-term incentive scheme must include:

(1) an explanation of the effect of the proposed amendments; and
(2) the full terms of the proposed amendments, or a statement that the full text of the scheme as amended will be available for inspection.

01/07/2005

Discounted option arrangements

LR 13.8.15

If shareholders' approval is required by LR 9.4.4 R, the circular to shareholders must include the following information:

(1) details of the persons to whom the options, warrants or rights are to be granted; and
(2) a summary of the principal terms of the options, warrants or rights.

01/07/2005

Reminders of conversion rights

LR 13.8.16

(1) A circular to holders of listed securities convertible into shares reminding them of the times when conversion rights are exercisable must include:

(a) the date of the last day for lodging conversion forms and the date of the expected sending of the certificates;
(b) a statement of the market values for the securities on the first dealing day in each of the six months before the date of the circular and on the latest practicable date before sending the circular;
(c) the basis of conversion in the form of a table setting out capital and income comparisons;
(d) a brief explanation of the tax implications of conversion for holders resident for tax purposes in the United Kingdom;
(e) if there is a trustee, or other representative, of the securities holders to be redeemed, a statement that the trustee, or other representative, has given its consent to the issue of the circular or stated that it has no objection to the resolution being put to a meeting of the securities holders;
(f) reference to future opportunities to convert and whether the terms of conversion will be the same as or will differ from those available at present, or, if there are no such opportunities, disclosure of that fact;
(g) reference to letters of indemnity, for example, if certificates have been lost;
(h) if power exists to allot shares issued on conversion to another person, reference to forms of nomination; and
(i) a statement as to whether holders exercising their rights of conversion will retain the next interest payment due on the securities.

(2) The circular must not contain specific advice as to whether or not to convert the securities.

01/07/2005

LR 13 Annex 1

Class 1 circulars

01/07/2005

The following table identifies (by reference to certain paragraphs of Annex 1 and Annex 3 of the PD Regulation) the additional information required to be included in a class 1 circular relating to the listed company and the undertaking the subject of the transaction.

Information

Listed Company

Undertaking the subject of the transaction

Annex 1 item 4 - Risk factors

Annex 1 item 5.1.1 - Company name

Annex 1 item 5.1.4 - Company address

Annex 1 item 12 - Trend information

Annex 1 item 16.2 - Service contracts

Annex 1 item 17.2 - Director's interests in shares

Annex 1 item 18.1 - Major interests in shares

Annex 1 item 19 - Related party transactions

Annex 1 item 20.8 - Litigation

Annex 1 item 20.9 - Significant changes

Annex 1 item 22 - Material contracts

Annex 1 item 24 - Documents on display

Annex 3 item 3.1 - Working capital

LR 13 Annex 1.1

The information required by this Annex must be presented as follows:

(1)

the information required by Annex 1 item 22 (material contracts), Annex 1 item 20.8 (litigation) and Annex 1 item 20.9 (significant change)

(a)

for an acquisition, in separate statements for the listed company and its subsidiary undertakings and for the undertaking, business or assets to be acquired; or

(b)

for a disposal, in separate statements for the listed company and its subsidiary undertakings (on the basis that the disposal has taken place), and for the undertaking, business or assets to be disposed of;

(2)

the information required by Annex 3 item 3.1 (working capital) and, if relevant Annex 1 item 12 (trend information):

(a)

in the case of an acquisition, in a single statement for the listed company and its subsidiary undertakings (on the basis that the acquisition has taken place); or

(b)

in the case of a disposal, in a single statement for the listed company and its subsidiary undertakings (on the basis that the disposal has taken place).

In determining what information is required to be included by virtue of Annex 1 item 22 (material contracts) if a prospectus or listing particulars are not required, regard should be had to whether information about that provision is information which securities holders of the issuer would reasonably require for the purpose of making a properly informed assessment about the way in which to exercise the voting rights attached to their securities or the way in which to take any other action required of them related to the subject matter of the circular.

The information required by this Annex is modified as follows:

(1)

if the listed company is issuing shares for which listing is sought, the information regarding major interests in shares (Annex 1 item 18.1) and directors' interests in shares (Annex 1 item 17.2) must be given for the share capital both as existing and as enlarged by the shares for which listing is sought;

(2)

information required by Annex 1 item 19 (related party transactions) and Annex 1 item 16.2 (directors' service contracts) does not need to be given if it has already been published before the circular is sent; and

(3)

information referred to in Annex 3 item 3.1 (Working capital) is not required to be included in a class 1 circular published by a closed-ended investment fund.

Export chapter as

Legal Instruments that change this Chapter Contents of circulars

LR 14

Secondary listing of overseas companies

LR 14.1

Application

01/07/2005

LR 14.1.1

This chapter applies to an overseas company with, or applying for, a secondary listing of equity securities.

01/07/2005
Future version of LR 14.1.1 after 06/03/2008

LR 14.2

Requirements for listing

01/07/2005

LR 14.2.1

An applicant which is applying for a secondary listing of equity securities must comply with all of LR 2 (Requirements for listing- all securities).

01/07/2005
Future version of LR 14.2.1 after 06/04/2010

Shares in public hands

LR 14.2.2

(1) If an application is made for the admission of a class of shares, a sufficient number of shares of that class must, no later than the time of admission, be distributed to the public in one or more EEA States.
(2) For the purposes of paragraph (1), account may also be taken of holders in one or more states that are not EEA States, if the shares are listed in the state or states.
(3) For the purposes of paragraph (1), a sufficient number of shares will be taken to have been distributed to the public when 25% of the shares for which application for admission has been made are in public hands.
(4) For the purposes of paragraphs (1), (2) and (3), shares are not held in public hands if they are held, directly or indirectly by:

(a) a director of the applicant or of any of its subsidiary undertakings;
(b) a person connected with a director of the applicant or of any of its subsidiary undertakings;
(c) the trustees of any employees' share scheme or pension fund established for the benefit of any directors and employees of the applicant and its subsidiary undertakings;
(d) any person who under any agreement has a right to nominate a person to the board of directors of the applicant; or
(e) any person or persons in the same group or persons acting in concert who have an interest in 5% or more of the shares of the relevant class.

(5) For the purposes of paragraph (3), treasury shares are not to be taken into consideration when calculating the number of shares of the class.

[Note: Article 48 CARD]

06/08/2007
Past version of LR 14.2.2 before 06/08/2007

LR 14.2.3

The FSA may modify LR 14.2.2 R to accept a percentage lower than 25% if it considers that the market will operate properly with a lower percentage in view of the large number of shares of the same class and the extent of their distribution to the public. For that purpose, the FSA may take into account shares of the same class that are held (even though they are not listed) in states that are not EEA States.

[Note: Article 48 CARD]

06/08/2007
Past version of LR 14.2.3 before 06/08/2007

Shares of a non-EEA company

LR 14.2.4

[Note: Article 51 CARD]

01/07/2005

Listing applications

LR 14.2.5

An overseas issuer applying for a secondary listing of equity securities will need to comply with LR 3 (Listing applications).

01/07/2005
Future version of LR 14.2.5 after 06/10/2009

LR 14.2.6

An overseas issuer with a secondary listing of equity securities applying for a primary listing of its securities must:

(1) comply with LR 3 as if it were a new applicant; and
(2) comply with LR 6 to LR 13.

01/07/2005

LR 14.3

Continuing obligations

01/07/2005

Admission to trading

LR 14.3.1

The listed equity securities of an overseas company must be admitted to trading on an RIE's market for listed securities at all times.

01/07/2005
Future version of LR 14.3.1 after 06/10/2009

Shares in public hands

LR 14.3.2

(1) An overseas company must comply with LR 14.2.2 R at all times.
(2) An overseas company that no longer complies with LR 14.2.2 R must notify the FSA as soon as possible of its non-compliance.

01/07/2005
Future version of LR 14.3.2 after 06/10/2009

LR 14.3.3

An overseas company should consider LR 5.2.2G (2) in relation to its compliance with LR 14.2.2 R.

01/07/2005
Future version of LR 14.3.3 after 06/10/2009

Further issues

LR 14.3.4

Where equity security of the same class as equity securities that are listed are allotted, an application for admission to listing of such equity securities must be made as soon as possible and in any event within one year of the allotment.

[Note: Article 64 CARD]

01/07/2005
Future version of LR 14.3.4 after 06/04/2010

Copies of documents

LR 14.3.6

An overseas company must forward to the FSA, for publication through the document viewing facility, two copies of:

(1) all circulars, notices, reports or other documents to which the listing rules apply, at the same time as any such documents are issued; and
(2) all resolutions passed by the company other than resolutions concerning ordinary business at an annual general meeting, as soon as possible after the relevant general meeting.

01/07/2005
Future version of LR 14.3.6 after 06/10/2009

LR 14.3.7

(1) An overseas company must notify a RIS as soon as possible when a document has been forwarded to the FSA under LR 14.3.6 R unless the full text of the document is provided to the RIS.
(2) A notification made under paragraph (1) must set out where copies of the relevant document can be obtained.

01/07/2005
Future version of LR 14.3.7 after 06/10/2009

Contact details

LR 14.3.8

An overseas company must ensure that the FSA is provided with up to date contact details of appropriate persons nominated by it to act as the first point of contact with the FSA in relation to the overseas company's compliance with the listing rules and the disclosure rules and transparency rules, as applicable.

01/07/2005
Future version of LR 14.3.8 after 06/10/2009

Temporary documents of title (including renounceable documents)

LR 14.3.9

An overseas company must ensure that any temporary document of title (other than one issued in global form) for an equity security:

(1) is serially numbered;
(2) states where applicable:

(a) the name and address of the first holder and names of joint holders (if any);
(b) the pro rata entitlement;
(c) the last date on which transfers were or will be accepted for registration for participation in the issue;
(d) how the equity securities rank for dividend or interest;
(e) the nature of the document of title and proposed date of issue;
(f) how fractions (if any) are to be treated; and
(g) for a rights issue, the time, being not less than 21 days, in which the offer may be accepted, and how equity securities not taken up will be dealt with; and

(3) if renounceable:

(a) states in a heading that the document is of value and negotiable;
(b) advises holders of equity securities who are in any doubt as to what action to take to consult appropriate independent advisers immediately;
(c) states that where all of the equity securities have been sold by the addressee (other than ex rights or ex capitalisation), the document should be passed to the person through whom the sale was effected for transmission to the purchaser;
(d) has the form of renunciation and the registration instructions printed on the back of, or attached to, the document;
(e) includes provision for splitting (without fee) and for split documents to be certified by an official of the overseas company or authorised agent;
(f) provides for the last day for renunciation to be the second business day after the last day for splitting; and
(g) if at the same time as an allotment is made of shares issued for cash, shares of the same class are also allotted credited as fully paid to vendors or others, provides for the period for renunciation to be the same as, but no longer than, that provided for in the case of shares issued for cash.

01/07/2005
Future version of LR 14.3.9 after 10/02/2009

Definitive documents of title

LR 14.3.10

An overseas company must ensure that any definitive document of title for an equity security (other than a bearer security) includes the following matters on its face (or on the reverse in the case of (5) and (7)):

(1) the authority under which the overseas company is constituted and the country of incorporation and registered number (if any);
(2) the number or amount of equity securities the certificate represents and, if applicable, the number and denomination of units (in the top right-hand corner);
(3) a footnote stating that no transfer of the equity security or any portion of it represented by the certificate can be registered without production of the certificate;
(4) if applicable, the minimum amount and multiples thereof in which the equity security is transferable;
(5) the date of the certificate;
(6) for a fixed income security, the interest payable and the interest payment dates and on the reverse (with reference shown on the face) an easily legible summary of the rights as to redemption or repayment and (where applicable) conversion; and
(7) for shares with preferential rights, on the face (or, if not practicable, on the reverse), a statement of the conditions thereof as to capital, dividends and (where applicable) conversion.

01/07/2005
Future version of LR 14.3.10 after 06/10/2009

Disclosure and Transparency Rules

LR 14.3.11

An overseas company, whose securities are admitted to trading on a regulated market in the United Kingdom, should consider its obligations under the disclosure rules and transparency rules.

01/07/2005
Future version of LR 14.3.11 after 06/10/2009

Registrar

LR 14.3.15

(1) This rule applies to an overseas company for whom the United Kingdom is a host Member State for the purposes of the Transparency Directive.
(2) An overseas company must appoint a registrar in the United Kingdom if:

(a) there are 200 or more holders resident in the United Kingdom; or
(b) 10% of more of the equity securities are held by persons resident in the United Kingdom.

LR 14.3.15A

An overseas company for whom the United Kingdom is the home Member State for the purposes of the Transparency Directive should see LR 14.3.22 G and LR 14.3.23 R.

20/01/2007

Notifications relating to capital

LR 14.3.17

An overseas company must notify a RIS as soon as possible (unless otherwise indicated in this rule) of the following information relating to its capital:

(1) any proposed change in its capital structure including the structure of its listed debt securities, save that an announcement of a new issue may be delayed while marketing or underwriting is in progress;
(2) [deleted]
(3) any redemption of listed equity securities including details of the number of equity securities redeemed and the number of equity securities of that class outstanding following the redemption;
(4) [deleted]
(5) any extension of time granted for the currency of temporary documents of title;
(6) [deleted]
(7) the results of any new issue of listed equity securities or of a public offering of existing shares or other equity securities.

LR 14.3.18

Where the equity securities are subject to an underwriting agreement an overseas company may, at its discretion and subject to DTR 2 (Disclosure and control of inside information by issuers), delay notifying a RIS as required by LR 14.3.17R (7) for up to two business days until the obligation by the underwriter to take or procure others to take equity securities is finally determined or lapses. In the case of an issue or offer of equity securities which is not underwritten, notification of the result must be made as soon as it is known.

01/07/2005
Future version of LR 14.3.18 after 06/10/2009

Compliance with the transparency rules

LR 14.3.22

An overseas company, whose securities are admitted to trading on a regulated market, should consider its obligations under DTR 4 (Periodic financial reporting), DTR 5 (Vote holder and issuer notification rules) and DTR 6 (Access to information).

20/01/2007
Future version of LR 14.3.22 after 06/10/2009

LR 14.3.23

20/01/2007

Export chapter as

Legal Instruments that change this Chapter Secondary listing of overseas companies

LR 15

Closed-Ended Investment Funds

LR 15.1

Application

01/07/2005

LR 15.1.1

This chapter applies to a closed-ended investment fund applying for, or with, a primary listing of equity securities.

LR 15.2

Requirements for listing

01/07/2005

LR 15.2.1

To be listed, an applicant must comply with:

(1) LR 2 (Requirements for listing);
(2) only the following provisions of LR 6 (Additional requirements for listing for equity securities);

(a) LR 6.1.3 R (1)(d) and (e), if the applicant is a new applicant for the admission of shares or securities convertible into its own shares and it has published or filed audited accounts;
(b) LR 6.1.3 R (2);
(c) LR 6.1.16 R to LR 6.1.24 G; and

(3) LR 15.2.2 R to LR 15.2.13 G.

Investment activity

LR 15.2.2

An applicant must invest and manage its assets in a way which is consistent with its object of spreading investment risk.

28/09/2007
Past version of LR 15.2.2 before 28/09/2007

Control of investee companies

LR 15.2.3

Although there is no restriction on a closed-ended investment fund taking a controlling stake in an investee company, to ensure a spread of investment risk a closed-ended investment fund should avoid:

(1) cross-financing between the businesses forming part of its investment portfolio including, for example, through the provision of undertakings or security for borrowings by such businesses for the benefit of another; and
(2) the operation of common treasury functions as between the closed-ended investment fund and investee companies.

28/09/2007
Past version of LR 15.2.3 before 28/09/2007

Trading activity

LR 15.2.4

(1) A closed-ended investment fund and its subsidiaries must not conduct any trading activity which is significant in the context of its group as a whole.
(2) This rule does not prevent the businesses forming part of the investment portfolio of the closed-ended investment fund from conducting trading activities themselves.

28/09/2007
Past version of LR 15.2.4 before 28/09/2007

Cross-holdings

LR 15.2.5

(1) No more than 10%, in aggregate, of the value of the total assets of a closed-ended investment fund at admission may be invested in other listed closed-ended investment funds.
(2) The restriction in (1) does not apply to investments in closed-ended investment funds which themselves have published investment policies to invest no more than 15% of their total assets in other listed closed-ended investment funds.

Feeder funds

LR 15.2.6

If an applicant principally invests its funds in another company or fund ("A") and A invests in a portfolio of investments, the applicant must control the investment policy of A and ensure that A complies with the requirements relating to the spread of investment risk set out in this chapter (see LR 15.2.2 R to LR 15.2.5 R).

Investment policy

LR 15.2.7

An applicant must have a published investment policy that contains information about the policies which the closed-ended investment fund will follow relating to asset allocation, risk diversification, and gearing, and that includes maximum exposures.

28/09/2007
Past version of LR 15.2.7 before 28/09/2007

LR 15.2.8

The information in the investment policy, including quantitative information concerning the exposures mentioned in LR 15.2.7 R, should be sufficiently precise and clear as to enable an investor to:

(1) assess the investment opportunity;
(2) identify how the objective of risk spreading is to be achieved; and
(3) assess the significance of any proposed change of investment policy.

28/09/2007
Past version of LR 15.2.8 before 28/09/2007

Sufficient and appropriate experience of directors and investment managers

LR 15.2.9

An applicant must ensure that, collectively, its directors and investment managers have sufficient and appropriate experience in the management of assets on a scale and type in which the applicant proposes to invest.

28/09/2007
Past version of LR 15.2.9 before 28/09/2007

LR 15.2.10

(1) An applicant is likely to have sufficient and appropriate experience if:

(a) its assets are or will be managed by a person or persons who have permission from the FSA or from a competent authority to manage investments; or
(b) it can otherwise demonstrate that the persons who will have responsibility for managing its assets have appropriate experience (over at least the preceding three years) of managing a portfolio of assets which is comparable to its portfolio.

(2) An applicant will have appropriate experience under (1)(b) if the persons within the entity responsible for managing the assets have managed a portfolio of investments that has a value of at least 50% of the funds the applicant is proposing to raise.

28/09/2007
Past version of LR 15.2.10 before 28/09/2007

Independence

LR 15.2.11

The board of directors or equivalent body of the applicant must be able to act independently of any investment manager appointed to manage investments of the applicant.

(1) [to follow]
(2) [to follow]

LR 15.2.12

To satisfy LR 15.2.11 R a majority of the board or equivalent body of the applicant (including the Chairman) should not be:

(1) directors, employees, partners, officers or professional advisers of or to:

(a) an investment manager of the applicant; or
(b) any other company in the same group as the investment manager of the applicant; or

(2) directors, employees or professional advisers of or to other investment entities that are:

(a) managed by the same investment manager as the investment manager to the applicant; or
(b) managed by any other company in the same group as the investment manager to the applicant.

28/09/2007
Past version of LR 15.2.12 before 28/09/2007

LR 15.2.13

To comply with LR 15.2.11 R:

(1) the board of the applicant should have no more than one director who is also a director, partner, employee or professional adviser of or to:

(a) the investment manager to the applicant; or
(b) any other company in the same group as the investment manager to the applicant; and

(2) a director described in (1) should be subject to annual re-election by shareholders.

28/09/2007
Past version of LR 15.2.13 before 28/09/2007

LR 15.3

Listing applications and procedures

01/07/2005

LR 15.3.1

An applicant is required to comply with LR 3 (Listing applications).

28/09/2007
Past version of LR 15.3.1 before 28/09/2007

Sponsors

LR 15.3.2

An applicant that is seeking admission of its equity securities is required to retain a sponsor in accordance with LR 8 (Sponsors).

LR 15.3.3

In addition to the circumstances set out in LR 8.2.1 R when a sponsor must be appointed, an applicant must appoint a sponsor on each occasion that it makes an application for admission of equity securities which requires the production of listing particulars.

Multi-class fund or umbrella fund

LR 15.3.4

An application for the listing of securities of a multi-class fund or umbrella fund must provide details of the various classes or designations of securities intended to be issued by the applicant.

28/09/2007
Past version of LR 15.3.4 before 28/09/2007

LR 15.4

Continuing obligations

01/07/2005

Compliance with LR 9

LR 15.4.1

A closed-ended investment fund must comply with all of the requirements of LR 9 (Continuing obligations) subject to the modifications and additional requirements set out in this section.

28/09/2007
Past version of LR 15.4.1 before 28/09/2007

Investment activity and compliance with investment policy

LR 15.4.2

A closed-ended investment fund must, at all times, invest and manage its assets:

(1) in a way which is consistent with its object of spreading investment risk; and
(2) in accordance with its published investment policy.

28/09/2007
Past version of LR 15.4.2 before 28/09/2007

Control of investee companies

LR 15.4.3

A closed-ended investment fund should have regard to the guidance in LR 15.2.3 G at all times.

28/09/2007
Past version of LR 15.4.3 before 28/09/2007

Trading activity

LR 15.4.4

A closed-ended investment fund must comply with LR 15.2.4 R at all times.

28/09/2007
Past version of LR 15.4.4 before 28/09/2007

Cross-holdings

LR 15.4.5

A closed-ended investment fund must, when making an acquisition of a constituent investment, observe the principles relating to cross-holdings in LR 15.2.5 R.

28/09/2007
Past version of LR 15.4.5 before 28/09/2007

Feeder funds

LR 15.4.6

If a closed-ended investment fund principally invests its funds in another company or fund ("A") and A invests in a portfolio of investments, the closed-ended investment fund must ensure that LR 15.2.6 R is complied with at all times.

Independence

LR 15.4.7

LR 15.2.11 R - LR 15.2.13 G apply at all times to a closed-ended investment fund.

Shareholder approval for material changes to investment policy

LR 15.4.8

A closed-ended investment fund must obtain the prior approval of the holders of the majority of its ordinary equity shares to any material change to its published investment policy.

LR 15.4.9

In considering what is a material change to the published investment policy, the closed-ended investment fund should have regard to the cumulative effect of all the changes since its shareholders last had the opportunity to vote on the investment policy or, if they have never voted, since the admission to listing.

Conversion of an existing listed class of equity securities

LR 15.4.10

An existing listed class of equity securities may not be converted into a new class or an unlisted class unless prior approval has been given by the holders of the majority of the closed-ended investment fund's ordinary equity shares in that existing class.

Further issues

LR 15.4.11

(1) Unless authorised by the holders of the majority of its shares, a closed-ended investment fund may not issue further shares of the same class as existing shares (including issues of treasury shares) for cash at a price below the net asset value per share of those shares unless they are first offered pro rata to existing holders of shares of that class.
(2) When calculating the net asset value per share, treasury shares held by the closed-ended investment fund should not be taken into account.

LR 15.5

Transactions

28/09/2007
Past version of LR 15.5 before 28/09/2007

Compliance with the Model Code

LR 15.5.1

(1) A closed-ended investment fund must comply with the provisions of the Model Code.
(2) LR 9.2.7 R to LR 9.2.10 R do not apply to a closed-ended investment fund.
(3) Paragraph (1) does not apply to:

(a) dealings by persons discharging managerial responsibilities in the closed-ended investment fund;
(b) purchases by the closed-ended investment fund of its own securities; and
(c) sales of treasury shares for cash or transfers (except for sales and transfers by the closed-ended investment fund of treasury shares in the circumstances set out in LR 12.6.2 R);

if the closed-ended investment fund satisfies the requirements of (4).
(4) The transactions described in (3) may be entered into during a close period if:

(a) the closed-ended investment fund is satisfied that all inside information which the directors and the entity may have in periods leading up to an announcement of results has previously been notified to a RIS; and
(b) the closed-ended investment fund notifies a RIS that it is satisfied that all inside information has previously been notified.

28/09/2007
Past version of LR 15.5.1 before 28/09/2007

Significant transactions

LR 15.5.2

A closed-ended investment fund must comply with LR 10 (Significant transactions), except in relation to transactions that are executed in accordance with the scope of its published investment policy.

Transactions with related parties

LR 15.5.3

LR 11 (Related party transactions) applies to a closed-ended investment fund.

28/09/2007
Past version of LR 15.5.3 before 28/09/2007

LR 15.5.4

In addition to the definition in LR 11.1.4 R a related party includes any investment manager of the closed-ended investment fund.

LR 15.5.5

[to follow]

LR 15.6

Notifications and periodic financial information

28/09/2007
Past version of LR 15.6 before 28/09/2007

Changes to tax status

LR 15.6.1

A closed-ended investment fund must notify any change in its taxation status to a RIS as soon as possible.

28/09/2007
Past version of LR 15.6.1 before 28/09/2007

Annual financial report

LR 15.6.2

In addition to the requirements in LR 9.8 (Annual financial report), a closed-ended investment fund must include in its annual financial report:

(1) a statement (including a quantitative analysis) explaining how it has invested its assets with a view to spreading investment risk in accordance with its published investment policy;
(2) a statement, set out in a prominent position, as to whether in the opinion of the directors, the continuing appointment of the investment manager on the terms agreed is in the interests of its shareholders as a whole, together with a statement of the reasons for this view;
(3) a summary of the principal contents of any agreements between the closed-ended investment fund and each of the investment managers, including but not limited to any provisions relating to compensation payable in the event of termination of the agreement;
(4) the name of the investment managers together with an indication of the terms and duration of their appointment, the basis for their remuneration and any arrangements relating to the termination of their appointment;
(5) the full text of its investment policy; and
(6) a comprehensive and meaningful analysis of its portfolio.

Annual financial report additional requirements for property investment entities

LR 15.6.3

A closed-ended investment fund that, as at the end of its financial year, has invested more than 20% of its assets in property must include in its annual financial report a summary of the valuation of its portfolio, carried out in accordance with LR 15.6.4 R.

28/09/2007
Past version of LR 15.6.3 before 28/09/2007

LR 15.6.4

A valuation required by LR 15.6.3 R must:

(1) either:

(a) be made in accordance with the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors; or
(b) where the valuation does not comply in all applicable respects with the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors, include a statement which sets out a full explanation of such non-compliance; and

(2) be carried out by an external valuer as defined in the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors.

LR 15.6.5

The summary described in LR 15.6.3 R must include:

(1) the total value of properties held at the year end;
(2) totals of the cost of properties acquired;
(3) the net book value of properties disposed of during the year; and
(4) an indication of the geographical location and type of properties held at the year end.

28/09/2007
Past version of LR 15.6.5 before 28/09/2007

Statement regarding compliance with Combined Code

LR 15.6.6

(1) This rule applies to a closed-ended investment fund that has no executive directors.
(2) A closed-ended investment fund's statement required by LR 9.8.6R (6) need not include details about the following principles and provisions of the Combined Code except to the extent that those principles or provisions relate specifically to non-executive directors:

(a) Principle B.1 (including Code Provisions B.1.1 to B.1.6): and
(b) Principle B.2 (including Code Provisions B.2.1 to B.2.4).

Annual financial and half yearly report

LR 15.6.7

In addition to the requirements in LR 9 (Continuing obligations), half-yearly reports and, if applicable, preliminary statements of annual results must include information showing the split between:

(1) dividend and interest received; and
(2) other forms of income (including income of associated companies).

28/09/2007
Past version of LR 15.6.7 before 28/09/2007

Notification of investments

LR 15.6.8

A closed-ended investment fund must notify a RIS of the following:

(1) within two business days of the end of each calendar month, a list of all investments in other listed closed-ended investment funds, as at the last business day of that month, which themselves do not have stated investment policies to invest no more than 15% of their total assets in other listed closed-ended investment funds; and
(2) within two business days of the end of each quarter, a list of all investments with a value greater than 5% of the closed-ended investment fund's total assets and at least the 10 largest investments as at the last business day of that quarter.

Export chapter as

Legal Instruments that change this Chapter Closed-Ended Investment Funds

LR 16

Open-ended investment companies

LR 16.1

Application

01/07/2005

LR 16.1.1

This chapter applies to an open-ended investment company applying for, or with, a primary listing of equity securities which is:

(1) an ICVC that has been granted an authorisation order by the FSA; or
(2) an overseas collective investment scheme that is a recognised scheme.

LR 16.2

Requirements and eligibility for listing

28/09/2007
Past version of LR 16.2 before 28/09/2007

LR 16.2.1

To be listed, an applicant must comply with:

(1) LR 2 (Requirements for listing); and
(2) only LR 6.1.22 R to LR 6.1.24 G of LR 6 (Additional requirements for listing for equity securities).

LR 16.3

Listing applications

28/09/2007
Past version of LR 16.3 before 28/09/2007

LR 16.3.1

An applicant for admission is required to comply with LR 3 (Listing applications).

28/09/2007
Past version of LR 16.3.1 before 28/09/2007

LR 16.3.2

The FSA will admit to listing such number of securities as the applicant may request for the purpose of future issues. At the time of issue the securities will be designated to the relevant class.

28/09/2007
Past version of LR 16.3.2 before 28/09/2007

Sponsors

LR 16.3.3

An applicant that is seeking admission of its equity securities must retain a sponsor in accordance with LR 8 (Sponsors).

LR 16.3.4

In addition to the circumstances set out in LR 8.2.1 R when a sponsor must be appointed, an applicant must appoint a sponsor when it makes an application for admission of equity securities which requires the production of listing particulars.

LR 16.3.5

LR 8.4.5R (3) is modified to require the notification of interests of 10% or more for an open-ended investment company.

28/09/2007
Past version of LR 16.3.5 before 28/09/2007

Multi-class fund or umbrella fund

LR 16.3.6

An applicant which is a multi-class or umbrella fund which seeks to create a new class of security without increasing its share capital for which listing has previously been granted, must provide the FSA with the details of the new class and no further application for listing is required.

28/09/2007
Past version of LR 16.3.6 before 28/09/2007

LR 16.4

Requirements with continuing application

28/09/2007
Past version of LR 16.4 before 28/09/2007

LR 16.4.1

An open-ended investment company must comply with:

(1) LR 9 (Continuing obligations) except LR 9.2.6B R,;
(2) LR 15.5.1 R; and
(3) LR 15.6.1 R.

LR 16.4.2

LR 15.6.6 R applies to an open-ended investment company if it has no executive directors.

28/09/2007
Past version of LR 16.4.2 before 28/09/2007

LR 16.4.3

The interests of a single person or entity which exceeds 10% of the issued shares (calculated exclusive of treasury shares) of any class of share in the capital of the open-ended investment company must, so far as they are known to it, be notified to a RIS as soon as possible following the open-ended investment company becoming aware of those interests.

28/09/2007
Past version of LR 16.4.3 before 28/09/2007

LR 16.4.4

LR 10 (Significant transactions) and LR 12 (Dealing in own securities and treasury shares) do not apply to an open-ended investment company.

28/09/2007
Past version of LR 16.4.4 before 28/09/2007

Export chapter as

Legal Instruments that change this Chapter Open-ended investment companies

LR 17

Debt and specialist securities

LR 17.1

Application

01/07/2005

LR 17.1.1

This chapter applies to

(1) an issuer of any of the following types of securities:

(a) debt securities;
(b) asset-backed securities;
(c) certificates representing debt securities; and
(d) specialist securities of the following types:

(i) convertible securities which convert to debt securities;
(ii) convertible securities which convert to equity securities; and
(iii) convertible securities which are exchangeable for securities of another company.

01/07/2005
Future version of LR 17.1.1 after 06/04/2010

LR 17.1.2

An issuer, as described in LR 17.1.1 R includes:

(1) a state monopoly;
(2) a state finance organisation;
(3) a statutory body; and
(4) an OECD state guaranteed issuer.

01/07/2005

LR 17.1.3

A state, a regional or local authority or a public international body with listed debt securities should see LR 17.5 for its continuing obligations

01/07/2005

LR 17.2

Requirements for listing and listing applications

01/07/2005

Requirements for listing

LR 17.2.1

An issuer to whom this chapter applies will need to comply with LR 2 (Requirements for listing - all securities).

01/07/2005

Listing Applications

LR 17.2.2

An issuer to whom this chapter applies will need to comply with LR 3 (Listing applications).

01/07/2005

LR 17.3

Requirements with continuing application

01/07/2005

Copies of documents

LR 17.3.1

(1) An issuer must forward to the FSA, for publication through the document viewing facility, two copies of any document required by LR 17.3 or LR 17.4 at the same time the document is issued.
(2) An issuer must notify a RIS as soon as possible when a document has been forwarded to the FSA under paragraph (1) unless the full text of the document is provided to the RIS.
(3) A notification made under paragraph (2) must set out where copies of the relevant document can be obtained.

01/07/2005

Admission to trading

LR 17.3.2

(1) An issuer's securities must be admitted to trading on a RIE's market for listed securities at all times.
(2) An issuer must inform the FSA in writing without delay if it has:

(a) requested a RIE to admit or re-admit any of its listed securities to trading; or
(b) requested a RIE to cancel or suspend trading of any of its listed securities; or
(c) been informed by a RIE that the trading of any of its listed securities will be cancelled or suspended.

01/07/2005

Annual accounts

LR 17.3.3A

LR 17.3.4 R to LR 17.3.6 G apply to an issuer that is not already required to comply with DTR 4.

20/01/2007

LR 17.3.4

(1) An issuer must publish its annual report and annual accounts as soon as possible after they have been approved.
(2) An issuer must approve and publish its annual report and accounts within six months of the end of the financial period to which they relate.
(3) The annual report and accounts must:

(a) have been prepared in accordance with the issuer's national law and, in all material respects, with national accounting standards or IAS; and
(b) have been independently audited and reported on, in accordance with:

(i) the auditing standards applicable in an EEA State; or
(ii) an equivalent auditing standard.

20/01/2007
Past version of LR 17.3.4 before 20/01/2007

LR 17.3.5

(1) If an issuer prepares both own and consolidated annual accounts it may publish either form provided that the unpublished accounts do not contain any significant additional information.
(2) If the annual accounts do not give a true and fair view of the assets and liabilities, financial position and profits or losses of the issuer or group, additional information must be provided to the satisfaction of the FSA.
(3) An issuer incorporated or established in a non-EEA State which is not required to draw up its accounts so as to give a true and fair view but is required to draw them up to an equivalent standard, may draw up its accounts to this equivalent standard.

20/01/2007
Past version of LR 17.3.5 before 20/01/2007

LR 17.3.6

An issuer that meets the following criteria is not required to comply with LR 17.3.4 R:

(1) The issuer is an issuer of asset backed securities and would if it were a debt issuer to which DTR 4 applied be relieved of the obligations to draw up and publish annual, half yearly financial reports and interim management statements in accordance with DTR 4.4.2 R provided the issuer is not otherwise required to comply with any other requirement for the publication of annual reports and accounts.
(2)

(a) the issuer:

(i) is a wholly owned subsidiary of a listed company;
(ii) issues listed securities that are unconditionally and irrevocably guaranteed by the issuer's listed holding company or equivalent arrangements are in place;
(iii) is included in the consolidated accounts of its listed holding company; and
(iv) is not required to comply with any other requirement for the preparation of annual report and accounts; and

(b) non publication of the issuer's accounts would not be likely to mislead the public with regard to facts and circumstances that are essential for assessing the securities.

20/01/2007
Past version of LR 17.3.6 before 20/01/2007

Disclosure Rules and Transparency Rules

LR 17.3.8

An issuer, whose securities are admitted to trading on a regulated market in the United Kingdom, should consider its obligations under DTR 2 (Disclosure and control of inside information by issuers).

01/07/2005

LR 17.3.9

An issuer that is not already required to comply with DTR 2 must comply with DTR 2 as if it were an issuer for the purposes of the disclosure rules and transparency rules.

20/01/2007
Past version of LR 17.3.9 before 20/01/2007

LR 17.3.9A

An issuer, whose securities are admitted to trading on a regulated market, should consider its obligations under DTR 4 (Periodic financial reporting), DTR 5 (Vote holder and issuer notification rules) and DTR 6 (Access to information).

20/01/2007

LR 17.3.9B

An issuer that is not already required to comply with the transparency rules must comply with DTR 6.3 as if it were an issuer for the purposes of the transparency rules.

20/01/2007

Amendments to trust deeds

LR 17.3.10

An issuer must ensure that any circular it issues to holders of its listed securities about proposed amendments to a trust deed includes:

(1) an explanation of the effect of the proposed amendments; and
(2) either the full terms of the proposed amendments, or a statement that they will be available for inspection:

(a) from the date the circular is sent until the close of the relevant general meeting at a place in or near the City of London or such other place as the FSA may determine; and
(b) at the place of the general meeting for at least 15 minutes before and during the meeting.

01/07/2005

Early redemptions

LR 17.3.12

(1) An issuer must ensure that any circular it issues to holders of its listed securities relating to a resolution proposing to redeem listed securities before their due date for redemption includes:

(a) an explanation of the reasons for the early redemption;
(b) a statement of the market values for the securities on the first dealing day in each of the six months before the date of the circular and on the latest practicable date before sending the circular;
(c) a statement of any interests of any director in the securities;
(d) if there is a trustee, or other representative, of the holders of the securities to be redeemed, a statement that the trustee, or other representative, has given its consent to the issue of the circular or stated that it has no objection to the resolution being put to a meeting of the securities holders;
(e) the timetable for redemption; and
(f) an explanation of the procedure to be followed by the securities holders.

(2) The circular must not contain specific advice about whether or not to accept the proposal for redemption.
(3) The timetable for redemption in the circular must have been approved by the RIE on which the listed securities are traded.

01/07/2005

Documents of title

LR 17.3.13

An issuer must ensure that any definitive document of title for a security (other than a bearer security) includes the following matters on its face (or on the reverse in the case of paragraph (5)):

(1) the authority under which the issuer is constituted and the country of incorporation and registered number (if any);
(2) the number or amount of securities the certificate represents and, if applicable, the number and denomination of units (in the top right-hand corner);
(3) a footnote stating that no transfer of the security or any portion of it represented by the certificate can be registered without production of the certificate;
(4) if applicable, the minimum amount and multiples thereof in which the security is transferable; and
(5) [deleted]
(6) the interest payable and the interest payment dates and on the reverse (with reference shown on the face) an easily legible summary of the rights as to redemption or repayment and (where applicable) conversion.

06/08/2007
Past version of LR 17.3.13 before 06/08/2007

LR 17.4.7

In the case of debt securities guaranteed by another company, an issuer must submit to the FSA the annual report and accounts of the company that is providing the guarantee unless that company is listed or adequate information is otherwise available.

01/07/2005

LR 17.4.8

In the case of convertible securities which are exchangeable for securities of another company, an issuer must submit to the FSA the annual report and accounts of that other company unless that company is listed or adequate information is otherwise available.

01/07/2005

Disclosure: asset-backed securities

LR 17.4.9

Where an issuer proposes to issue further debt securities that are:

(1) backed by the same assets; and
(2) not fungible with existing classes of debt securities; or
(3) not subordinated to existing classes of debt securities;

the issuer must inform the holders of the existing classes of debt securities.

01/07/2005

LR 17.5

Requirements for states, regional and local authorities and public international bodies

01/07/2005

LR 17.5.1

This chapter does not apply to a state, a regional or local authority and a public international body with listed debt securities except that such an issuer must comply with LR 17.3.2 R (Admission to trading).

20/01/2007
Past version of LR 17.5.1 before 20/01/2007

Compliance with transparency rules

LR 17.5.2

(1) This rule applies to a state, a regional or local authority and a public international body with listed debt securities for whom the United Kingdom is its home Member State for the purposes of the Transparency Directive.
(2) An issuer referred to in paragraph (1) that is not already required to comply with the transparency rules must comply with:

(a) DTR 5.6.3 R (disclosure of changes in rights);
(b) DTR 6.1.2 R (amendments to constitution);
(c) DTR 6.1.3 R (2) (equality of treatment);
(d) DTR 6.2 (Filing information and use of language); and
(e) DTR 6.3 (Dissemination of information).

20/01/2007

Export chapter as

Legal Instruments that change this Chapter Debt and specialist securities

LR 18

Certificates representing certain securities

LR 18.1

Application

01/07/2005

LR 18.1.1

This chapter applies to:

(1) a depositary; and
(2) an issuer of the securities which are represented by certificates.

01/07/2005

LR 18.2

Requirements for listing

01/07/2005

Issuer of securities is taken to be the issuer

LR 18.2.1

If an application is made for the admission of certificates representing certain securities, the issuer of the securities which the certificates represent is the issuer for the purpose of the listing rules and the application will be dealt with as if it were an application for the admission of the securities.

01/07/2005

Certificates representing certain securities

LR 18.2.2

For certificates representing certain securities to be admitted to listing an issuer of the securities which the certificates represent must comply with LR 18.2.3 R to LR 18.2.7 G.

01/07/2005

LR 18.2.3

An issuer must be:

(1) duly incorporated or otherwise validly established according to the relevant laws of its place of incorporation or establishment; and
(2) operating in conformity with its constitution. [Note: Articles 42 and 52 CARD]

01/07/2005

LR 18.2.4

For the certificates to be listed, the securities which the certificates represent must:

(1) conform with the law of the issuer's place of incorporation;
(2) be duly authorised according to the requirements of the issuer's constitution; and
(3) have any necessary statutory or other consents. [Note: Articles 45 and 53 CARD]

01/07/2005

LR 18.2.5

(1) For the certificates to be listed, the securities which the certificates represent must be freely transferable. [Note: Articles 46, 54 and 60 CARD]
(2) For the certificates to be listed, the securities which the certificates represent must be fully paid and free from all liens and from any restriction on the right of transfer (except any restriction imposed for failure to comply with a notice under section 793 of the Companies Act 2006 (Notice by company requiring information about interests in its shares)).

06/08/2007
Past version of LR 18.2.5 before 06/08/2007

LR 18.2.6

The FSA may modify LR 18.2.5 R to allow partly paid securities if it is satisfied that their transferability is not restricted and investors have been provided with appropriate information to enable dealings in the securities to take place on an open and proper basis.

[Note: Articles 46 and 54 CARD]

01/07/2005

LR 18.2.7

The FSA may, in exceptional circumstances, modify or dispense with LR 18.2.5 R where the issuer has the power to disapprove the transfer of securities if the FSA is satisfied that this power would not disturb the market in those securities.

01/07/2005

Certificates representing equity securities of an overseas company

LR 18.2.8

(1) If an application is made for the admission of a class of certificates representing shares of an overseas company, a sufficient number of certificates must, no later than the time of admission, be distributed to the public in one or more EEA States.
(2) For the purposes of paragraph (1), account may also be taken of holders in one or more states that are not EEA States, if the certificates are listed in the state or states.
(3) For the purposes of paragraph (1), a sufficient number of certificates will be taken to have been distributed to the public when 25% of the certificates for which application for admission has been made are in public hands.
(4) For the purposes of paragraphs (1), (2) and (3), certificates are not held in public hands if they are held, directly or indirectly by:

(a) a director of the applicant or of any of its subsidiary undertakings; or
(b) a person connected with a director of the applicant or of any of its subsidiary undertakings; or
(c) the trustees of any employees' share scheme or pension fund established for the benefit of any directors and employees of the applicant and its subsidiary undertakings; or
(d) any person who under any agreement has a right to nominate a person to the board of directors of the applicant; or
(e) any person or persons in the same group or persons acting in concert who have an interest in 5% or more of the certificates of the relevant class.

06/08/2007
Past version of LR 18.2.8 before 06/08/2007

LR 18.2.9

The FSA may modify LR 18.2.8 R to accept a percentage lower than 25% if it considers that the market will operate properly with a lower percentage in view of the large number of certificates of the same class and the extent of their distribution to the public. For that purpose, the FSA may take into account certificates of the same class that are held (even though they are not listed) in states that are not EEA States.

[Note: Article 48 CARD]

06/08/2007
Past version of LR 18.2.9 before 06/08/2007

Certificates representing equity securities of a UK company

LR 18.2.10

Certificates representing equity shares of a company incorporated in the United Kingdom will be admitted to listing only if the shares they represent are already listed or are the subject of an application for listing at the same time.

01/07/2005

Additional requirements for the certificates

LR 18.2.11

To be listed, the certificates representing certain securities must satisfy the requirements set out in LR 2.2.2 R to LR 2.2.11 R. For this purpose, in those rules references to securities are to be read as references to the certificates representing certain securities for which application for listing is made.

01/07/2005

LR 18.2.12

To be listed, the certificates representing certain securities must not impose obligations on the depositary that issues the certificates except to the extent necessary to protect the certificate-holders rights to, and the transmission of entitlements of, the securities.

01/07/2005

Additional requirements for a depositary

LR 18.2.13

A depositary that issues certificates representing certain securities must be a suitably authorised and regulated financial institution acceptable to the FSA.

01/07/2005

LR 18.2.14

A depositary that issues certificates representing certain securities must hold on trust (or under equivalent arrangements) for the sole benefit of the certificate holders the securities to which the certificates relate, all rights relating to the securities and all money and benefits that it may receive in respect of them, subject only to payment of the remuneration and proper expenses of the issuer of the certificates.

01/07/2005

LR 18.3

Listing applications

01/07/2005

LR 18.3.1

An applicant for admission of certificates representing certain securities must comply with LR 3.2 and LR 3.4.4 R to LR 3.4.8 R subject to the following modifications.

06/08/2007
Past version of LR 18.3.1 before 06/08/2007

LR 18.3.1A

An applicant for admission of certificates representing certain securities must submit a letter to the FSA setting out how it satisfies the requirements in LR 2 and LR 18.2 no later than when the first draft of a prospectus for the certificates is submitted, or if the FSA is not approving a prospectus, at a time agreed with the FSA.

06/08/2007

LR 18.3.2

In addition to the documents referred to in LR 3.4.6 R, an applicant for admission of certificates representing certain securities must keep a copy of the executed deposit agreement for six years after the admission of the relevant certificates.

06/08/2007
Past version of LR 18.3.2 before 06/08/2007

LR 18.4

Continuing obligations

01/07/2005

LR 18.4.1

An issuer of debt securities which the certificates represent must comply with the continuing obligations set out in LR 17.3 (Requirements with continuing application) in addition to the requirements of this section.

20/01/2007
Past version of LR 18.4.1 before 20/01/2007

LR 18.4.2

A UK issuer of equity shares which the certificates represent must comply with the continuing obligations set out in LR 9 (Continuing obligations) in addition to the requirements of this section.

01/07/2005

LR 18.4.3

An overseas company that is the issuer of the equity shares which the certificates represent must comply with:

(1) the requirements of this section;
(2) the continuing obligations set out in LR 14.3 (Continuing obligations) (other than in LR 14.3.2 R and LR 14.3.15 R), LR 18.2.8 R and LR 18.4.3A R; and
(3) DTR 2 (Disclosure and control of inside information by issuers), as if it were an issuer for the purposes of the disclosure rules and transparency rules.

06/08/2007
Past version of LR 18.4.3 before 06/08/2007

Annual accounts continuing obligations

LR 18.4.3A

(1) An issuer within LR 18.4.3 R must publish its annual report and annual accounts as soon as possible after they have been approved.
(2) An issuer within LR 18.4.3 R must approve and publish its annual report and accounts within six months of the end of the financial period to which they relate.
(3) The annual report and accounts must:

(a) have been prepared in accordance with the issuer's national law and, in all material respects, with national accounting standards or IAS; and
(b) have been independently audited and reported on, in accordance with:

(i) the auditing standards applicable in an EEA State; or
(ii) an equivalent auditing standard.

06/04/2007

LR 18.4.3B

For the purposes of LR 18.4.3R (2), a reference to complying with the obligations in LR 14.3 is to be read as a reference to complying with those obligations in respect of the certificates.

06/08/2007

Change of depositary

LR 18.4.4

Prior to any change of the depositary of certificates representing certain securities, the new depositary must satisfy the FSA that it meets the requirements of LR 18.2.11 R to LR 18.2.14 R.

01/07/2005

Notification of change of depositary

LR 18.4.5

(1) An issuer of securities represented by listed certificates representing certain securities must notify a RIS of any change of depositary.
(2) The notification required by paragraph (1) must be made as soon as possible, and in any event by 7.30 a.m. on the business day following the change of depositary, and contain the following information:

(a) the name, registered office and principal administrative establishment if different from the registered office of the depositary;
(b) the date of incorporation and length of life of the depositary, except where indefinite;
(c) the legislation under which the depositary operates and the legal form which it has adopted under the legislation; and
(d) any changes to the information regarding the certificates representing certain securities.

01/07/2005

Documents of title

LR 18.4.6

An issuer must comply with the requirements in LR 9.5.15 R (Temporary documents of title) and LR 9.5.16 R (Definitive documents of title) so far as relevant to certificates representing equity securities.

01/07/2005

Compliance with Transparency Rules

LR 18.4.7

20/01/2007

LR 18.4.8

[18.4.8 to follow]

20/01/2007

LR 18.4.9

An issuer that is not already required to comply with the transparency rules must comply with DTR 6.3 as if it were an issuer for the purposes of the transparency rules.

20/01/2007
Past version of LR 18.4.9 before 20/01/2007

Export chapter as

Legal Instruments that change this Chapter Certificates representing certain securities

LR 19

Securitised derivatives

LR 19.1

Application

01/07/2005

LR 19.1.1

This chapter applies to an issuer of:

(1) retail securitised derivatives;
(2) specialist securitised derivatives; and
(3) other derivative products if the FSA has specifically approved their listing under this chapter.

01/07/2005

Other derivative products

LR 19.1.2

For the purposes of this chapter, an issuer of other derivative products that have received the specific approval of the FSA to be listed under this chapter must comply with the rules applicable to an issuer of specialist securitised derivatives unless otherwise stated.

01/07/2005

LR 19.1.3

The FSA will not admit to listing, under this chapter, other derivative products that are likely to be bought and traded by investors who are not specialist investors, unless the derivative product falls within the scope of specified investments in Part III of the Regulated Activities Order.

01/07/2005

LR 19.2

Requirements for listing

01/07/2005

LR 19.2.1

An applicant for the admission of securitised derivatives must comply with LR 2 (Requirements for listing - all securities) and the following requirements.

01/07/2005

Requirements for listing: the issuer

LR 19.2.2

An applicant for the admission of securitised derivatives must either:

(1) have permission under the Act to carry on its activities relating to securitised derivatives and be either a bank or a securities and futures firm;
(2) if the applicant is an overseas company:

(a) be regulated by an overseas regulator responsible for the regulation of banks, securities firms or futures firms and which has a lead regulation agreement for financial supervision with the FSA; and
(b) be carrying on its activities relating to securitised derivatives within the approved scope of its business; or

(3) arrange for its obligations in relation to the securitised derivatives, to be unconditionally and irrevocably guaranteed by, or benefit from an arrangement which is equivalent in its effect to such a guarantee provided by, an entity which satisfies (1) or (2).

01/07/2005

Requirements for listing

LR 19.2.3

For a securitised derivative to be listed, its underlying instrument must be traded on a regulated, regularly operating, recognised open market, unless it is:

(1) a currency; or
(2) an index; or
(3) an interest rate; or
(4) a basket of any of the above.

01/07/2005

LR 19.2.4

The FSA may modify or dispense with the requirement in LR 19.2.3 R for other derivative products.

01/07/2005

Requirements for listing: retail products

LR 19.2.5

To be listed, a retail securitised derivative must:

(1) satisfy the requirements set out in LR 19.2.3 R; and
(2) not be a contingent liability investment.

01/07/2005

LR 19.2.6

To be listed, if a retail securitised derivative gives its holder a right of exercise, its terms and conditions must provide that:

(1) for cash settled securitised derivatives that are in the money at the exercise time on the expiration date, the exercise of the securitised derivative is automatic; or
(2) for physically settled securitised derivatives that are in the money at the exercise time on the expiration date, if the holder fails to deliver an exercise notice by the time stipulated in the terms and conditions, the issuer will, irrespective of the failure to exercise, pay to the holder an amount in cash in lieu of the holders failure to deliver the exercise notice, the amount and method of calculation of this amount to be determined by the issuer.

01/07/2005

LR 19.3

Listing applications

01/07/2005

Listing application procedures

LR 19.3.1

An applicant for admission of securitised derivatives must comply with:

(1) LR 3.2 (Application for admission to listing); and
(2) LR 3.4.4 R to LR 3.4.8 R.

06/08/2007
Past version of LR 19.3.1 before 06/08/2007

LR 19.3.2

In addition to the documents referred to in LR 3.4.6 R, an applicant for admission of securitised derivatives must keep a copy of the securitised derivative agreement or securitised derivative instrument or similar document for six years after the admission of the relevant securitised derivative.

06/08/2007
Past version of LR 19.3.2 before 06/08/2007

LR 19.4

Continuing obligations

01/07/2005

Application

LR 19.4.1

An issuer that has only securitised derivative listed is subject to the continuing obligations set out in this chapter.

01/07/2005

LR 19.4.2

An issuer that has both securitised derivatives and other securities listed is subject to the continuing obligations set out in this chapter and the continuing obligations that are applicable to the other securities so listed.

01/07/2005

Admission to trading

LR 19.4.3

(1) An issuer's listed securitised derivatives must be admitted to trading on a RIE's market for listed securities at all times.
(2) An issuer must inform the FSA in writing as soon as possible if it has:

(a) requested a RIE to admit or re-admit any of its listed securitised derivatives to trading; or
(b) requested a RIE to cancel or suspend trading of any of its listed securitised derivatives; or
(c) been informed by a RIE that the trading of any of its listed securitised derivatives will be cancelled or suspended.

01/07/2005

LR 19.4.7

If an issue is guaranteed by an unlisted company, an issuer must submit the guarantor's accounts to the FSA.

01/07/2005

Settlement arrangements

LR 19.4.10

(1) An issuer must ensure that appropriate settlement arrangements for its listed securitised derivatives are in place.
(2) Listed securitised derivatives must be eligible for electronic settlement, which includes settlement by a relevant system, as that term is defined in the Uncertificated Securities Regulations 1995 (SI 1995/3272).

01/07/2005

Disclosure rules and transparency rules

LR 19.4.11

An issuer must comply with DTR 2.1 to DTR 2.7 as if it were an issuer for the purposes of the disclosure rules and transparency rules.

01/07/2005

LR 19.4.11A

20/01/2007

LR 19.4.11B

For the purposes of compliance with the transparency rules, the FSA considers that an issuer of securitised derivatives should comply with DTR 4, DTR 5 and DTR 6 as if it were an issuer of debt securities as defined in the transparency rules.

20/01/2007

LR 19.4.11C

An issuer that is not already required to comply with the transparency rules must comply with DTR 6.3 as if it were an issuer for the purposes of the transparency rules.

20/01/2007

Documents of title

LR 19.4.12

An issuer must comply with the requirements in LR 9.5.15 R (temporary documents of title) and LR 9.5.16 R (definitive documents of title) so far as relevant to securitised derivatives.

01/07/2005

LR 19.5

Disclosures

01/07/2005

LR 19.5.1

An issuer must submit to the FSA two copies of any document required by LR 19.5.2 R to LR 19.5.10 R at the same time as the document is issued.

01/07/2005

LR 19.5.7

An issuer must notify a RIS of all notices to holders of listed securitised derivatives no later than the date of despatch or publication.

01/07/2005

Underlying instruments

LR 19.5.9

An issuer must notify a RIS of any adjustment or modification it makes to the securitised derivative as a result of any change in or to the underlying instrument including details of the underlying event that necessitated the adjustment or modification.

01/07/2005

Suspension of listing

LR 19.5.10

An issuer must inform the FSA immediately if it becomes aware that an underlying instrument that is listed or traded outside the United Kingdom has been suspended.

Note: LR 5.1.2G (7) and (8) and LR 5.4.6 G are of relevance to an issuer of securitised derivatives.

01/07/2005

Export chapter as

Legal Instruments that change this Chapter Securitised derivatives

LR App 1

Relevant definitions

LR App 1.1

Relevant definitions

01/07/2005

LR App 1.1.1

Note: The following definitions relevant to the listing rules are extracted from the Glossary.

Act

The Financial Services and Markets Act 2000.

admission or admission to listing

admission of securities to the official list.

admission to trading

admission of securities to trading on an RIE's market for listed securities.

(as defined in the PD Regulation) announcements:

(a)

relating to a specific offer to the public of securities or to an admission to trading on a regulated market; and

(b)

aiming to specifically promote the potential subscription or acquisition of securities.

applicant

an issuer which is applying for admission of securities.

asset backed security

(as defined in the PD Regulation) securities which:

(1)

represent an interest in assets, including any rights intended to assure servicing, or the receipt or timeliness of receipts by holders of assets of amounts payable there under; or

(2)

are secured by assets and the terms of which provide for payments which relate to payments or reasonable projections of payments calculated by reference to identified or identifiable assets.

associate

in relation to a director, substantial shareholder, or person exercising significant influence, who is an individual:

(1)

that individual's spouse, civil partner or child (together "the individual's family");

(2)

the trustees (acting as such) of any trust of which the individual or any of the individual's family is a beneficiary or discretionary object (other than a trust which is either an occupational pension scheme or an employees' share scheme which does not, in either case, have the effect of conferring benefits on persons all or most of whom are related parties;

(3)

any company in whose equity securities the individual or any member or members (taken together) of the individual's family or the individual and any such member or members (taken together) are directly or indirectly interested (or have a conditional or contingent entitlement to become interested) so that they are (or would on the fulfilment of the condition or the occurrence of the contingency be) able:
(a) to exercise or control the exercise of 30% or more of the votes able to be cast at general meetings on all, or substantially all, matters; or
(b) to appoint or remove directors holding a majority of voting rights at board meetings on all, or substantially all, matters.

For the purpose of paragraph (3), if more than one director of the listed company, its parent undertaking or any of its subsidiary undertakings is interested in the equity securities of another company, then the interests of those directors and their associates will be aggregated when determining whether that company is an associate of the director.

in relation to a substantial shareholder or person exercising significant influence, which is a company:

(1)

any other company which is its subsidiary undertaking or parent undertaking or fellow subsidiary undertaking of the parent undertaking;

(2)

any company whose directors are accustomed to act in accordance with the substantial shareholder's or person exercising significant influence's directions or instructions;

(3)

any company in the capital of which the substantial shareholder or person exercising significant influence and any other company under paragraph (1) or (2) taken together, is (or would on the fulfilment of a condition or the occurrence of a contingency be) able to exercise power of the type described in paragraph (3)(a) or (b) above of this definition.

authorised person

(in accordance with section 31 of the Act (Authorised persons)) one of the following:

(a)

a person who has a Part IV permission to carry on one or more regulated activities;

(b)

an incoming EEA firm;

(c)

an incoming Treaty firm;

(d)

a UCITS qualifier;

(e)

an ICVC;

(f)

the Society of Lloyd's.

authorised property unit trust

a unit trust scheme authorised by the FSA and which is a property scheme or an umbrella scheme each separate part of which would qualify as a property scheme if it were a separate authorised unit trust scheme.

bank

(a)

a firm with a Part IV permission which includes accepting deposits, and:

(i) which is a credit institution; or

(ii) whose Part IV permission includes a requirement that it comply with the rules in GENPRU and BIPRU relating to banks;

but which is not a building society, a friendly society or a credit union;

(b)

an EEA bank which is a full credit institution.

base prospectus

a base prospectus referred to in PR 2.2.7 R

book value of property

(in relation to a property company) the value of a property (which is not classified as a net current asset) before the deduction of mortgages or borrowings as shown in the company's latest annual report and accounts.

break fee

a fee payable by a listed company if certain specified events occur which have the effect of materially impeding a transaction or causing the transaction to fail.

building block

(as defined in the PD Regulation) a list of additional information requirements, not included in one of the schedules, to be added to one or more schedules, as the case may be, depending on the type of instrument and/or transaction for which a prospectus or base prospectus is drawn up.

business day

(1)

(in relation to anything done or to be done in (including to be submitted to a place in) any part of the United Kingdom), any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in that part of the United Kingdom;

(2)

(in relation to anything done or to be done by reference to a market outside the United Kingdom) any day on which that market is normally open for business.

Buy-back and Stabilisation Regulation

Commission Regulation (EC) of 22 December 2003 implementing the Market Abuse Directive as regards exemptions for buy-back programmes and stabilisation of financial instruments (No 2273/2003).

CARD

Consolidated Admissions and Reporting Directive.

certificate representing certain securities

the investment specified in article 80 of the Regulated Activities Order (Certificates representing certain securities), which is in summary: a certificate or other instrument which confers contractual or property rights (other than rights consisting of options):

(a)

in respect of any share, debenture, government and public security or warrant) held by a person other than the person on whom the rights are conferred by the certificate or instrument; and

(b)

the transfer of which may be effected without requiring the consent of that person;

but excluding any certificate or other instrument which confers rights in respect of two or more investments issued by different persons or in respect of two or more different government and public securities issued by the same person.

certificate representing debt securities

a certificate representing certain securities where the certificate or other instrument confers rights in respect of debentures or government and public securities.

certificate representing equity securities

a certificate representing certain securities where the certificate or other instrument confers rights in respect of equity securities.

certificate representing shares

a certificate representing certain securities where the certificate or other instrument confers rights in respect of equity shares.

CESR recommendations

the recommendations for the consistent implementation of the European Commission's Regulation on Prospectuses no 809/2004 published by the Committee of European Securities Regulators.

charge

(in relation to securitised derivatives) means any payment identified under the terms and conditions of the securitised derivatives.

Chinese wall

an arrangement that requires information held by a person in the course of carrying on one part of its business to be withheld from, or not to be used for, persons with or for whom it acts in the course of carrying on another part of its business.

circular

any document issued to holders of listed securities including notices of meetings but excluding prospectuses, listing particulars, annual reports and accounts, interim reports, proxy cards and dividend or interest vouchers.

class

securities the rights attaching to which are or will be identical and which form a single issue or issues.

class 1 acquisition

a class 1 transaction that involves an acquisition by the relevant listed company or its subsidiary undertaking.

class 1 circular

a circular relating to a class 1 transaction.

class 1 disposal

a class 1 transaction that consists of a disposal by the relevant listed company or its subsidiary undertaking.

class 1 transaction

a transaction classified as a class 1 transaction under LR 10.

class 2 transaction

a transaction classified as a class 2 transaction under LR 10.

class 3 transaction

a transaction classified as a class 3 transaction under LR 10.

class tests

the tests set out in LR 10 Ann 1 (and for certain specialist companies, those tests as modified or added to by LR 10.7), which are used to determine how a transaction is to be classified for the purposes of the listing rules.

closed-ended

(in relation to investment entities) an investment company which is not an open-ended investment company.

closed-ended investment fund

an entity:

(a)

which is an undertaking with limited liability, including a company, limited partnership, or limited liability partnership; and

(b)

whose primary object is investing and managing its assets (including pooled funds contributed by holders of its listed securities):

(i) in property of any description; and

(ii) with a view to spreading investment risk.

close period

as defined in paragraph 1(a) of the Model Code.

COBS

the Conduct of Business sourcebook, from 1 November 2007.

Combined Code

in relation to an issuer:

(1)

in respect of a reporting period commencing on or after 1 November 2006 the Combined Code on Corporate Governance published in June 2006 by the Financial Reporting Council; or

(2)

in respect of a reporting period commencing before 1 November 2006, the Combined Code on Corporate Governance published in July 2003 by the Financial Reporting Council.

company

any body corporate.

competent authority

(in relation to the functions referred to in Part VI of the Act):

(a)

the authority designated under Schedule 8 to the Act (transfer of functions under Part VI (Official listing)) as responsible for performing those functions under the Act; for the time being the FSA in its capacity as such; or

(b)

an authority exercising functions corresponding to those functions under the laws of another EEA State.

connected client

in relation to a sponsor or securities house, any client of the sponsor or securities house who is:

(a)

a partner, director, employee or controller (as defined in section 422 of the Act) of the sponsor or securities house or of an undertaking described in paragraph (d);

(b)

the spouse, civil partner or child of any individual described in paragraph (a);

(c)

a person in his capacity as trustee of a private trust (other than a pension scheme or an employees' share scheme) the beneficiaries of which include any person described in paragraph (a) or (b); or

(d)

an undertaking which in relation to the sponsor or securities house is a group undertaking.

connected person

as defined in section 96B(2) of the Act.

Consolidated Admissions and Reporting Directive

Directive of the European Parliament and of the Council on the admission of securities to official stock exchange listing and on information to be published on those securities (No 2001/34/EC).

constitution

memorandum and articles of association or equivalent constitutional document.

contingent liability investment

a derivative under the terms of which the client will or may be liable to make further payments (other than charges, and whether or not secured by margin) when the transaction falls to be completed or upon the earlier closing out of his position.

contract of significance

a contract which represents in amount or value (or annual amount or value) a sum equal to 1% or more, calculated on a group basis where relevant, of:

(1)

in the case of a capital transaction or a transaction of which the principal purpose or effect is the granting of credit, the aggregate of the group's share capital and reserves; or

(2)

in other cases, the total annual purchases, sales, payments or receipts, as the case may be, of the group.

convertible securities

a security which is:

(1)

convertible into, or exchangeable for, other securities; or

(2)

accompanied by a warrant or option to subscribe for or purchase other securities.

deal

a dealing transaction;

dealing

(in accordance with paragraph 2 of Schedule 2 to the Act (Regulated activities)) buying, selling, subscribing for or underwriting investments or offering or agreeing to do so, either as principal or as agent, including, in the case of an investment which is a contract of insurance, carrying out the contract.

debt security

debentures, debenture stock, loan stock, bonds, certificates of deposit or any other instrument creating or acknowledging indebtedness.

deferred bonus

any arrangement pursuant to the terms of which an employee or director may receive a bonus (including cash or any security) in respect of service and/or performance in a period not exceeding the length of the relevant financial year notwithstanding that the bonus may, subject only to the person remaining a director or employee of the group, be receivable by the person after the end of the period to which the award relates.

defined benefit scheme

in relation to a director, means a pension scheme which is not a money purchase scheme.

depositary

a person that issues certificates representing certain securities that have been admitted to listing or are the subject of an application for admission to listing.

DEPP

the Decision Procedure and Penalties manual

designated professional body

a professional body designated by the Treasury under section 326 of the Act (Designation of professional bodies) for the purposes of Part XX of the Act (Provision of Financial Services by Members of the Professions); as at 21 June 2001 the following professional bodies have been designated in the Financial Services and Markets Act 2000 (Designated Professional Bodies) Order 2001 (SI 2001/1226):
(a) The Law Society (England and Wales);
(b) The Law Society of Scotland;
(c) The Law Society of Northern Ireland;
(d) The Institute of Chartered Accountants in England and Wales;
(e) The Institute of Chartered Accountants of Scotland;
(f) The Institute of Chartered Accountants in Ireland;
(g) The Association of Chartered Certified Accountants;
(h) The Institute of Actuaries.

director

(in accordance with section 417(1)(a) of the Act) a person occupying in relation to it the position of a director (by whatever name called) and, in relation to an issuer which is not a body corporate, a person with corresponding powers and duties.

disclosure rules and transparency rules

(in accordance with section 73A(3) of the Act) rules relating to the disclosure of information in respect of financial instruments which have been admitted to trading on a regulated market or for which a request for admission to trading on such a market has been made.

document

any piece of recorded information, including (in accordance with section 417(1) of the Act (Interpretation)) information recorded in any form; in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form.

document viewing facility

a location identified on the FSA website where the public can inspect documents referred to in the listing rules as being documents to be made available at the document viewing facility.

DTR

the sourcebook containing the disclosure rules and transparency rules.

EEA State

(in accordance with paragraph 8 of Schedule 3 to the Act (EEA Passport Rights)) a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2 May 1992, as it has effect for the time being; as at 1 May 2004, the following are the EEA States: Austria, Belgium, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden and the United Kingdom.

the Enforcement Guide

employee

an individual:

(a)

who is employed or appointed by a person in connection with that person's business, whether under a contract of service or for services or otherwise; or

(b)

whose services, under an arrangement between that person and a third party, are placed at the disposal and under the control of that person;

but excluding an appointed representative or, where applicable, a tied agent of that person.

employees' share scheme

has the same meaning as in section 743 of the Companies Act 1985.

equity security

equity shares and securities convertible into equity shares.

equity share capital

(for a company), its issued share capital excluding any part of that capital which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution.

equivalent document

a document containing information equivalent to a prospectus for the purposes of PR 1.2.2R (2) or (3) or PR 1.2.3R (3) or (4).

exercise notice

(in relation to securitised derivatives), a document that notifies the issuer of a holder's intention to exercise its rights under the securitised derivative.

exercise price

(in relation to securitised derivatives), the price stipulated by the issuer at which the holder can buy or sell the underlying instrument from or to the issuer.

exercise time

(in relation to securitised derivatives), the time stipulated by the issuer by which the holder must exercise their rights.

expiration date

(in relation to securitised derivatives), the date stipulated by the issuer on which the holder's rights in respect of the securitised derivative ends.

extraction

(in relation to mineral companies), includes mining, quarrying or similar activities and the reworking of mine tailings or waste dumps.

FSA

the Financial Services Authority.

final terms

the document containing the final terms of each issue which is intended to be listed.

financial information table

financial information presented in a tabular form that covers the reporting period set out in in relation to the entities set out in, and to the extent relevant LR 13.5.15R and LR 13.5.16R.

50/50 joint venture

[deleted]

50/50 joint venture partner

[deleted]

group

(1)

except in LR 6.1.19 R, LR 8.3.6 R, LR 8.3.7 G and LR 8.7.8R (10), an issuer and its subsidiary undertakings (if any); and

(2)

in LR 6.1.19 R, LR 8.3.6 R, LR 8.3.7 G and LR 8.7.8R (10), as defined in section 421 of the Act.

guarantee

(in relation to securitised derivatives), either:

(1)

a guarantee given in accordance with LR 19.2.2R(3) (if any); or

(2)

any other guarantee of the issue of securitised derivatives.

guidance

guidance given by the FSA under the Act.

Handbook

the FSA's Handbook of rules and guidance.

Home Member State or Home State

(as defined in section 102C of the Act) in relation to an issuer of transferable securities, the EEA State which is the "home Member State" for the purposes of the prospectus directive (which is to be determined in accordance with Article 2.1(m) of that directive.

Host Member State or Host State

(as defined in Article 2.1(n) of the prospectus directive) the State where an offer to the public is made or admission to trading is sought, when different from the home Member State.

IAS

International Accounting Standards.

inside information

as defined in section 118C of the Act.

insider list

a list of persons with access to inside information as required by DTR 2.8.1 R.

intermediaries offer

a marketing of securities already or not yet in issue, by means of an offer by, or on behalf of, the issuer to intermediaries for them to allocate to their own clients.

International Accounting Standards

international accounting standards within the meaning of EC Regulation No 1606/2002 of the European Parliament and of the Council of 19 July 2002 as adopted from time to time by the European Commission in accordance with that Regulation.

in the money

(in relation to securitised derivatives):

(a)

where the holder has the right to buy the underlying instrument or instruments from the issuer, when the settlement price is greater than the exercise price; or

(b)

where the holder has the right to sell the underlying instrument or instruments to the issuer, when the exercise price is greater than the settlement price.

investment manager

a person who, on behalf of a client, manages investments and is not a wholly-owned subsidiary of the client.

investment trust

a company listed in the United Kingdom or another EEA State which:

(a)

is approved by the Inland Revenue Commissioners under section 842 of the Income and Corporation Taxes Act 1988 (or, in the case of a newly formed company, has declared its intention to conduct its affairs so as to obtain such approval); or

(b)

is resident in an EEA State other than the United Kingdom and would qualify for such approval if resident and listed in the United Kingdom.

issuer

any company or other legal person or undertaking (including a public sector issuer), any class of whose securities has been admitted to listing or is the subject of an application for admission to listing.

list of sponsors

the list of sponsors maintained by the FSA in accordance with section 88(3)(a) of the Act.

listed

admitted to the official list maintained by the FSA in accordance with section 74 of the Act.

listed company

a company that has any class of its securities listed.

listing particulars

(in accordance with section 79(2) of the Act), a document in such form and containing such information as may be specified in listing rules.

listing rules

(in accordance with section 73A(2) of the Act) rules relating to admission to the official list.

London Stock Exchange

London Stock Exchange Plc.

long-term incentive scheme

any arrangement (other than a retirement benefit plan, a deferred bonus or any other arrangement that is an element of an executive director's remuneration package) which may involve the receipt of any asset (including cash or any security) by a director or employee of the group:

(1)

which includes one or more conditions in respect of service and/or performance to be satisfied over more than one financial year; and

(2)

pursuant to which the group may incur (other than in relation to the establishment and administration of the arrangement) either cost or a liability, whether actual or contingent.

the sourcebook containing the listing rules.

MAD

Market Abuse Directive.

major subsidiary undertaking

a subsidiary undertaking that represents 25% or more of the aggregate of the gross assets or profits (after deducting all charges except taxation) of the group.

Market Abuse Directive

Directive of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse) (No 2003/6/EC).

member

(in relation to a profession) a person who is entitled to practise that profession and, in practising it, is subject to the rules of the relevant designated professional body, whether or not he is a member of that body.

mineral company

a company or group, whose principal activity is, or is planned to be, the extraction of mineral resources (which may or may not include exploration for mineral resources).

mineral expert's report

a report prepared in accordance with the CESR recommendations

mineral resources

include metallic and non-metallic ores, mineral concentrates, industrial minerals, construction aggregates, mineral oils, natural gases, hydrocarbons and solid fuels including coal.

Model Code

the Model Code on directors' dealings in securities set out in LR 9 Ann 1.

modified auditors report

an auditor's report:

(a)

in which the auditor's opinion is qualified; or

(b)

which sets out:

(i) a problem relating to the business as a going concern; or

(ii) a significant uncertainty, the resolution of which is dependent upon future events.

money purchase scheme

in relation to a director, means a pension scheme under which all of the benefits that may become payable to or in respect of the director are money purchase benefits.

net annual rent

(in relation to a property) the current income or income estimated by the valuer:

(1)

ignoring any special receipts or deductions arising from the property;

(2)

excluding Value Added Tax and before taxation (including tax on profits and any allowances for interest on capital or loans); and

(3)

after making deductions for superior rents (but not for amortisation) and any disbursements including, if appropriate, expenses of managing the property and allowances to maintain it in a condition to command its rent.

new applicant

an applicant that does not have any class of its securities already listed.

non-EEA State

a country or state that is not an EEA State.

OECD state guaranteed issuer

an issuer of debt securities whose obligations in relation to those securities have been guaranteed by a member state of the OECD.

offer

an offer of transferable securities to the public.

offer for sale

an invitation to the public by, or on behalf of, a third party to purchase securities of the issuer already in issue or allotted (and may be in the form of an invitation to tender at or above a stated minimum price).

offer for subscription

an invitation to the public by, or on behalf of, an issuer to subscribe for securities of the issuer not yet in issue or allotted (and may be in the form of an invitation to tender at or above a stated minimum price).

offer of transferable securities to the public

(as defined in section 102B of the Act), in summary:

(a)

a communication to any person which presents sufficient information on:

(i) the transferable securities to be offered, and

(ii) the terms on which they are offered,

to enable an investor to decide to buy or subscribe for the securities in question;

(b)

which is made in any form or by any means;

(c)

including the placing of securities through a financial intermediary;

(d)

but not including a communication in connection with trading on:

(i) a regulated market;

(ii) a multilateral trading facility; or

(iii) any market prescribed by an order under section 130A of the Act.

Note: This is only a summary, to see the full text of the definition, readers should consult section 102B of the Act.

offeror

(a)

in LR 5.2.10R, an offeror as defined in the Takeover Code; and

(b)

elsewhere in LR, a personwho makes an offer of transferable securities to the public.

official list

the list maintained by the FSA in accordance with section 74(1) of the Act for the purposes of Part VI of the Act.

open ended investment company open-ended investment company

as defined in section 236 of the Act (Open-ended investment companies).

open offer

an invitation to existing securities holders to subscribe or purchase securities in proportion to their holdings, which is not made by means of a renounceable letter (or other negotiable document).

option

the investment, specified in article 83 of the Regulated Activities Order (Options), which is an option to acquire or dispose of:

(a) a designated investment (other than an option); or

(b) currency of the United Kingdom or of any other country or territory; or

(d) an option to acquire or dispose of an option specified in (a), (b) or (c).

overseas

outside the United Kingdom.

overseas company

a company incorporated outside the United Kingdom.

overseas investment exchange

an investment exchange which has neither its head office nor its registered office in the United Kingdom.

parent undertaking

as defined in section 258 of the Companies Act 1985.

Part 6 rules

(in accordance with section 73A(1) of the Act) rules made for the purposes of Part 6 of the Act.

prospectus directive.

PD Regulation

Regulation number 809/2004 of the European Commission

percentage ratio

(in relation to a transaction) the figure, expressed as a percentage, that results from applying a calculation under a class test to the transaction.

person

(in accordance with the Interpretation Act 1978) any person, including a body of persons corporate or unincorporate (that is, a natural person, a legal person and, for example, a partnership).

person discharging managerial responsibilities

as defined in section 96B(1) of the Act.

person exercising significant influence

in relation to a listed company, a person or entity which exercises significant influence over that listed company.

placing

a marketing of securities already in issue but not listed or not yet in issue, to specified persons or clients of the sponsor or any securities house assisting in the placing, which does not involve an offer to the public or to existing holders of the issuer's securities generally.

the sourcebook containing the Prospectus Rules.

preference share

a share conferring preference as to income or return of capital which is not convertible into an equity share and does not form part of the equity share capital of a company.

primary listed issuer

an issuer with a primary listing of its securities.

primary listing

a listing by the FSA by virtue of which the issuer is subject to the full requirements of the listing rules.

probable reserves

(1)

in respect of mineral companies primarily involved in the extraction of oil and gas resources, those reserves which are not yet proven but which, on the available evidence and taking into account technical and economic factors, have a better than 50% chance of being produced; and

(2)

in respect of mineral companies other than those primarily involved in the extraction of oil and gas resources, those measured and/or indicated mineral resources, which are not yet proven but of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination and under specified economic conditions.

profit estimate

(as defined in the PD Regulation) a profit forecast for a financial period which has expired and for which results have not yet been published.

profit forecast

(as defined in the PD Regulation) a form of words which expressly states or by implication indicates a figure or a minimum or maximum figure for the likely level of profits or losses for the current financial period and/or financial periods subsequent to that period, or contains data from which a calculation of such a figure for future profits or losses may be made, even if no particular figure is mentioned and the word "profit" is not used.

prohibited period

as defined in the Model Code.

property

freehold, heritable or leasehold property.

property company

a company primarily engaged in property activities including:

(1)

the holding of properties (directly or indirectly) for letting and retention as investments;

(2)

the development of properties for letting and retention as investments;

(3)

the purchase and development of properties for subsequent sale; or

(4)

the purchase of land for development properties for retention as investments.

property valuation report

a property valuation report prepared by an independent expert in accordance with:

(1)

for an issuer incorporated in the United Kingdom, the Channel Islands or the Isle of Man, the Appraisal and Valuation Standards (5th edition) issued by the Royal Institution of Chartered Surveyors; or

(2)

for an issuer incorporated in any other place, either the standards referred to in paragraph (1) of this definition or the International Valuation Standards (7th edition) issued by the International Valuation Standards Committee.

prospectus

a prospectus required under the prospectus directive.

prospectus directive

the Directive of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading (No 2003/71/EC).

prospectus rules

(as defined in section 73A(4) of the Act) rules expressed to relate to transferable securities.

proven reserves

(1)

in respect of mineral companies primarily involved in the extraction of oil and gas resources, those reserves which, on the available evidence and taking into account technical and economic factors, have a better than 90% chance of being produced; and

(2)

in respect of mineral companies other than those primarily involved in the extraction of oil and gas resources, those measured mineral resources of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination, and under specified economic conditions.

public international body

the African Development bank, the Asian Development Bank, the Caribbean Development Bank, the Council of Europe Development Bank, the European Atomic Energy Community, the European Bank for Reconstruction and Development, the European Coal and Steel Community, the European Company for the Financing of Railroad Stock, the European Economic Community, the European Investment Bank, the Inter-American Development bank, the International Bank for Reconstruction and Development, the International Finance Corporation, the International Monetary Fund, the Nordic Investment bank.

public sector issuer

states and their regional and local authorities, state monopolies, state finance organisations, public international bodies, statutory bodies and OECD state guaranteed issuers.

recognised scheme

a scheme recognised under:

(a)

section 264 of the Act (Schemes constituted in other EEA States); or

(b)

section 270 of the Act (Schemes authorised in designated countries or territories); or

(c)

section 272 of the Act (Individually recognised overseas schemes).

registration document

a registration document referred to in PR 2.2.2R.

Regulated Activities Order

the Financial Services and Markets Act 2000 (Regulated Activities)
Order 2001 (SI 2001/544).

regulated market

a multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments in the system and in accordance with its non-discretionary rules in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III of MiFID.

regulatory information service or RIS

a Regulatory Information Service that is approved by the FSA as meeting the Primary Information Provider criteria and that is on the list of Regulatory Information Services maintained by the FSA.

related party

as defined in LR 11.1.4R.

related party circular

a circular relating to a related party transaction.

related party transaction

as defined in LR 11.1.5R.

relevant securities

has the same meaning as in section 80 of the Companies Act 1985.

retail securitised derivative

a securitised derivative which is not a specialist securitised derivative; in this definition, a "specialist securitised derivative" is a securitised derivative which, in accordance with the listing rules, is required to be admitted to listing with a clear statement on any disclosure document that the issue is intended for a purchase by only investors who are particularly knowledgeable in investment matters.

reverse takeover

a transaction classified as a reverse takeover under LR 10.

RIE

recognised investment exchange.

rights issue

an offer to existing security holders to subscribe or purchase further securities in proportion to their holdings made by means of the issue of a renounceable letter (or other negotiable document) which may be traded (as "nil paid" rights) for a period before payment for the securities is due.

rule

(in accordance with section 417(1) of the Act (Definitions)) a rule made by the FSA under the Act, including:
(a) a Principle; and
(b) an evidential provision.

Schedule

(as defined in the PD Regulation) a list of minimum information requirements adapted to the particular nature of the different types of issuers and/or the different securities involved.

scientific research based company

a company primarily involved in the laboratory research and development of chemical or biological products or processes or any other similar innovative science based company.

secondary listed issuer

an issuer with a secondary listing of its equity securities.

secondary listing

a listing by the FSA of equity securities of an overseas company which is not a primary listing.

securities note

a securities note referred to in PR 2.2.2R.

securitised derivative

an option or contract for differences which, in either case, is listed under LR 19 (including such an option or contract for differences which is also a debenture).

security

(in accordance with section 102A of the Act) anything which has been, or may be admitted to the official list.

settlement price

(in relation to securitised derivatives), the reference price or prices of the underlying instrument or instruments stipulated by the issuer for the purposes of calculating its obligations to the holder.

shadow director

as in sub-paragraph (b) of the definition of director in section 417(1) of the Act.

(in accordance with section 744 of the Companies Act 1985) a share in the share capital of a company, and includes:

(a)

stock (except where a distinction between shares and stock is express or implied); and

(b)

preference shares.

specialist investor

an investor who is particularly knowledgeable in investment matters.

specialist securities

securities which, because of their nature, are normally bought and traded by a limited number of investors who are particularly knowledgeable in investment matters.

specialist securitised derivative

a securitised derivative which because of its nature is normally bought and traded by a limited number of investors who are particularly knowledgeable in investment matters.

specified investment

any of the following investments specified in Part III of the Regulated Activities Order (Specified Investments):

(a)

deposit (article 74);

(aa)

electronic money (article 74A);

(b)

contract of insurance (article 75); for the purposes of the permission regime, this is sub-divided into:

(i) general insurance contract;

(ii) long-term insurance contract;

and then further sub-divided into classes of contract of insurance;

(c)

share (article 76);

(d)

debenture (article 77);

(e)

government and public security (article 78);

(f)

warrant (article 79);

(g)

certificate representing certain securities (article 80);

(h)

unit (article 81);

(i)

stakeholder pension scheme (article 82);

(j)

option (article 83); for the purposes of the permission regime, this is sub-divided into:

(i) option (excluding a commodity option and an option on a commodity future);

(ii) commodity option and an option on a commodity future;

(k)

future (article 84); for the purposes of the permission regime, this is sub-divided into:

(i) future (excluding a commodity future and a rolling spot forex contract);

(ii) commodity future;

(iii) rolling spot forex contract;

(l)

contract for differences (article 85); for the purposes of the permission regime, this is sub-divided into:

(i) contract for differences (excluding a spread bet and a rolling spot forex contract);

(ii) spread bet;

(iii) rolling spot forex contract;

(m)

underwriting capacity of a Lloyd's syndicate (article 86(1));

(n)

membership of a Lloyd's syndicate (article 86(2));

(o)

funeral plan contract (article 87);

(oa)

regulated mortgage contract (article 61(3);

(p)

rights to or interests in investments (article 89).

sponsor

a person approved, under section 88 of the Act by the FSA, as a sponsor.

state finance organisation

a legal person other than a company:

(1)

which is a national of an EEA State;

(2)

which is set up by or pursuant to a special law;

(3)

whose activities are governed by that law and consist solely of raising funds under state control through the issue of debt securities;

(4)

which is financed by means of the resources they have raised and resources provided by the EEA State; and

(5)

the debt securities issued by it are considered by the law of the relevant EEA State as securities issued or guaranteed by that state.

state monopoly

a company or other legal person which is a national of an EEA State and which:

(1)

in carrying on its business benefits from a monopoly right granted by an EEA state; and

(2)

is set up by or pursuant to a special law or whose borrowings are unconditionally and irrevocably guaranteed by an EEA state or one of the federated states of an EEA state.

subsidiary undertaking

as defined in section 258 of the Companies Act 1985.

substantial shareholder

any person who is entitled to exercise or to control the exercise of 10% or more of the votes able to be cast on all or substantially all matters at general meetings of the company (or of any company which is its subsidiary undertaking or parent undertaking or of a fellow subsidiary undertaking of its parent undertaking). Disregard for this purpose any voting rights which such a person exercises (or controls the exercise of) independently in its capacity as bare trustee, investment manager, collective investment undertaking or a long term insurer in respect of its linked long term business if no associate of that person interferes by giving direct or indirect instructions, or in any other way, in the exercise of such voting rights (except to the extent any such person confers or collaborates with such an associate which also acts in its capacity as investment manager, collective investment undertaking or long term insurer).

summary

(in relation to a prospectus) the summary included in the prospectus.

SUP

the Supervision manual.

supplementary listing particulars

(in accordance with section 81(1) of the Act), supplementary listing particulars containing details of the change or new matter.

supplementary prospectus

a supplementary prospectus containing details of a new factor, mistake or inaccuracy.

Takeover Code

the City Code on Takeovers and Mergers issued by the Takeover Panel.

target

the subject of a class 1 transaction.

tender offer

an offer by a company to purchase all or some of a class of its listed equity securities or preference shares at a maximum or fixed price (that may be established by means of a formula) that is:

(1)

communicated to all holders of that class by means of a circular or advertisement in two national newspapers;

(2)

open to all holders of that class on the same terms for at least 7 days; and

(3)

open for acceptance by all holders of that class pro rata to their existing holdings.

transferable security

(as defined in section 102A of the Act) anything which is a transferable security for the purposes of MiFID, other than money-market instruments for the purposes of that directive which have a maturity of less than 12 months.

treasury shares

qualifying shares to which sections 162A to 162G of the Companies Act 1985 apply.

trust deed

a trust deed or equivalent document securing or constituting debt securities.

United Kingdom.

underlying instrument

(in relation to securitised derivatives) means either:

(1)

if the securitised derivative is an option or debt security with the characteristics of an option, any of the underlying investments listed in article 83 of the Regulated Activities Order; or

(2)

if the securitised derivative is a contract for differences or debt security with the characteristics of a contract for differences, any factor by reference to which a profit or loss under article 85 of the Regulated Activities Order can be calculated.

unrecognised scheme

a collective investment scheme which is neither a recognised scheme nor a scheme that is constituted as an authorised unit trust scheme.

vendor consideration placing

a marketing, by or on behalf of vendors, of securities that have been allotted as consideration for an acquisition.

venture capital trust

a company which is, or which is seeking to become, approved as a venture capital trust under section 842AA of the Income and Corporation Taxes Act 1988.

warrant

the investment, specified in article 79 of the Regulated Activities Order (Instruments giving entitlements to investments), which is in summary: a warrant or other instrument entitling the holder to subscribe for a share, debenture or government and public security.

Export chapter as

Legal Instruments that change this Chapter Relevant definitions

LR App 2

Fees and financial penalty income

LR App 2.1

The provisions outlined in LR App 2.1 in relation to fees are set out in FEES 3 and 4

01/01/2006
Past version of LR App 2.1 before 01/01/2006

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Legal Instruments that change this Chapter Fees and financial penalty income

LR App 3

List of Regulatory Information Services

LR App 3.1

01/07/2005

LR App 3.1.1

The following are approved Regulatory Information Services:

Business Wire Regulatory Disclosure provided by Business Wire

FirstSight provided by Romeike

Announce provided by Hugin ASA

News Release Express provided by CCNMatthews UK Limited

PR Newswire Disclose provided by PRNewswire

RNS provided by the London Stock Exchange

01/07/2005
Future version of LR App 3.1.1 after 06/04/2010

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Legal Instruments that change this Chapter List of Regulatory Information Services

Transitional Provisions

LR TR 1

Transitional Provisions for Sponsors and Venture Capital Trusts

(1)

(2)

Material to which the transitional provision applies

(3)

(4)

Transitional provision

(5)

Transitional provision: dates in force

(6)

Handbook provision: coming into force

Amendments to LR set out in Annex B of the Transparency Obligations Directive (Disclosure and Transparency Rules) Instrument 2006, relating to:

(i) DTR 4 and periodic financial reporting; and

(ii) DTR 6 in so far as they may relate to, or are required to give effect to, amendments in (i).

The amendments described in column 2 shall have effect as follows:

(a)an issuer whose financial year starts on or after 20 January 2007 must comply with these amendments as of 20 January 2007; and(b)an issuer whose financial year starts before 20 January 2007 must comply with these amendments as of the start of its next financial year.

From 20 January 2007

Transitional Provisions for venture capital trusts

(1)

(2)

Material to which the transitional provision applies

(3)

(4)

Transitional provision

(5)

Transitional provision: dates in force

(6)

Handbook provision: coming into force

LR 15.2.11 R - LR 15.2.13 G and LR 15.4.7 R

Do not apply in respect of a venture capital trust listed before the date this instrument comes into force.

From 28 September 2007 to 28 September 2010

28 September 2007

LR 15.6.8 R

Does not apply in respect of a venture capital trust listed before the date this instrument comes into force.

From 28 September 2007 to 28 September 2010

28 September 2007

LR 11.1.5R (2)

Does not apply to arrangements between a venture capital trust and its investment manager where:

(1) the arrangements are such that each invests in or provides finance to a company and the investment or provision of finance is made either

(a) at the same time and on the same terms; or

(b) in accordance with a pre-existing agreement between the venture capital trust and its investment manager;

and

(2) the venture capital trust was listed before the date this instrument comes into force.

From 28 September 2007 to 28 September 2010

28 September 2007

General Transitional Provisions

(1)

(2) Material to which the transitional provision applies

(3)

(4) Transitional provision

(5) Transitional provision: dates in force

(6) Handbook provision: coming into force

LR provisions referring to Companies Acts 1985, 2006 or related provisions.

(1) To the extent that the whole or part of a provision of the Companies Act 2006 is yet to come into force, any reference to that provision or part of it should be read as a reference to the corresponding provision of the Companies Act 1985 currently in force (subject to the application of any relevant transitional provisions in the Companies Act 2006 or the rules).

(2) To the extent that the whole or part of a provision of the Companies Act 1985 is no longer in force it shall be read as a reference to the corresponding provision of the Companies Act 2006 or relevant DTR rule that has superseded it (subject to the application of any relevant transitional provisions).

6 October 2007

20 January 2007

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LR Listing Rules

Used in

Export part as

Preliminary

Introduction

Application

Modifying rules and consulting the FSA

Modifying or dispensing with rules

Companies in severe financial difficulty

Early consultation with FSA

Information gathering and publication

Information gathering

FSA may require issuer to publish information

Misleading information not to be published

Notification when a RIS is not open for business

Miscellaneous

Appointment of sponsor

Overseas companies

English language

Market abuse safe harbours

Fees

Electronic Communication

Market abuse safe harbours

Requirementsfor listing

Preliminary

Application

Refusal of applications

Special requirements

No conditional admission

Requirements for all securities

Incorporation

Validity

Admission to trading

Transferability

Market capitalisation

Whole class to be listed

Prospectus

Listing particulars

Convertible securities

Warrants or options to subscribe

Listing applications

Application

Application for admission to listing

Location of official list

Method of application

Grant of an application for admission to listing

Equity securities

Application

Documents to be provided 48 hours in advance

Documents to be provided on the day

Other documents to be submitted

Documents to be kept

Debt and other securities

Application - debt securities etc

Application - issuance programmes

Application - public sector issuers

Documents to be provided 48 hours in advance

Documents to be provided on the day of admission

Documents to be kept

Procedure for issuance programmes: initial offering and increase to programme size

Issuance programmes: final terms

Exempt public sector issuers

Other public sector issuers

Block listing

Application

When a block listing can be used

Listing particulars forprofessional securities market and certain other securities

Application and Purpose

Application

Purpose

Listing particulars to be approved and published

Contents and format of listing particulars

General contents of listing particulars

Summary

Format of listing particulars

Minimum information to be included

Incorporation by reference

Equivalent information

English language

Requirements
for listing

Listing particulars for
professional securities market and certain other securities