FCA Listing Rules

The Financial Conduct Authority (FCA) Listing Rules are a set of regulations governing companies seeking to list their securities on the UK's official list and to have their securities admitted to trading on the London Stock Exchange's (LSE) Main Market. Here's a summary of the FCA Listing Rules:

Purpose: The FCA Listing Rules aim to ensure the integrity, efficiency, and transparency of the UK's financial markets by establishing standards and requirements for companies seeking to list their securities. The rules provide investors with confidence in the credibility and reliability of listed companies and protect the interests of shareholders and other stakeholders.

Requirements:

1. Eligibility Criteria: Companies seeking to list their securities on the Main Market must meet certain eligibility criteria set out in the FCA Listing Rules. These criteria include requirements related to the company's financial standing, governance structure, business activities, and compliance with regulatory standards.
2. Disclosure Requirements: Listed companies are required to disclose certain information to the market in accordance with the FCA Listing Rules. This includes regular financial reporting, such as annual and interim financial statements, as well as other disclosures related to corporate governance, material events, and regulatory compliance.
3. Continuing Obligations: Listed companies are subject to ongoing obligations and responsibilities under the FCA Listing Rules, including requirements related to corporate governance, shareholder communication, and disclosure of inside information. Companies must also comply with rules governing transactions by directors, substantial shareholders, and related parties.

Applicability: The FCA Listing Rules apply to companies seeking to list their securities on the Main Market of the LSE, including:

• UK-incorporated companies
• Overseas companies seeking a primary or secondary listing on the Main Market
• Investment entities and special purpose acquisition companies (SPACs)
• Companies seeking admission to trading on the LSE's High Growth Segment or Specialist Fund Segment, subject to specific listing criteria and requirements

Overall, the FCA Listing Rules play a vital role in maintaining the integrity and reputation of the UK's financial markets by setting standards for companies seeking to list their securities and ensuring transparency and accountability in the disclosure of information to investors and the public.

The Financial Conduct Authority (FCA) Listing Rules establish various evidence requirements to ensure the integrity, transparency, and reliability of companies seeking to list their securities on the UK's official list and the London Stock Exchange's Main Market. Here's a summary of the key evidence requirements prescribed by the FCA Listing Rules:

1. Financial Information: Companies seeking listing are required to provide comprehensive financial information to demonstrate their financial standing and performance. This includes audited financial statements, including balance sheets, income statements, and cash flow statements, prepared in accordance with applicable accounting standards.
2. Prospectus: Companies must prepare a prospectus containing detailed information about their business, operations, financial condition, and prospects. The prospectus serves as a key document for investors to make informed investment decisions and must be supported by relevant evidence, including financial data, market analysis, and risk factors.
3. Corporate Governance Disclosure: The FCA Listing Rules require companies to disclose information about their corporate governance structure and practices, including board composition, committee memberships, and adherence to corporate governance codes. Companies must provide evidence of compliance with governance standards and disclose any deviations or non-compliance.
4. Material Contracts and Agreements: Companies must disclose material contracts and agreements that are relevant to their business operations, financial performance, or prospects. This may include contracts with customers, suppliers, lenders, or other parties that have a significant impact on the company's operations or financial position.
5. Due Diligence: Companies and their advisors are required to conduct due diligence to verify the accuracy and completeness of information disclosed in connection with the listing process. Due diligence involves a thorough review of the company's financial, legal, operational, and regulatory affairs to identify any material issues or risks that may affect the listing or investor decision-making.
6. Legal and Regulatory Compliance: Companies seeking listing must provide evidence of compliance with relevant legal and regulatory requirements, including company law, securities regulations, and listing rules. This may involve obtaining legal opinions, regulatory approvals, or other documentation to demonstrate compliance with applicable laws and regulations.

Overall, the evidence requirements of the FCA Listing Rules are designed to ensure that companies seeking listing provide accurate, reliable, and transparent information to investors and the market, facilitating informed investment decisions and maintaining confidence in the integrity of the UK's financial markets. Compliance with these requirements is essential for companies seeking to list their securities and for maintaining ongoing compliance with listing obligations.