PLUS is pleased to confirm that, with effect from 6 October 2009, both UK and international companies seeking access to the FSA’s new “Standard Segment” will be welcome to apply to its market for Officially Listed securities known as “PLUS-listed”. This reflects changes to the FSA listing rules, announced recently, which introduce greater flexibility to the UK listing regime.
Core to the proposals is the introduction of the concept of a two track system, to provide a choice for issuers wishing to access the deep pools of capital available through a London listing. Issuers may now choose either to follow the criteria already in place in the UK, which are more stringent and costly than elsewhere in the European Union – or to comply with a simpler process that is already standard practice across the EU.
The first option – to be called a “Premium” listing– will continue to be attractive to larger blue chip companies, seeking access to the deepest pools of institutional funds available in the UK or inclusion in the FTSE 100 index. The new, rationalised option – to be called a “Standard” listing – will appeal to smaller companies seeking a full listing as well as many issuers of other security types, such as Exchange Traded Funds (ETFs) or Shariah compliant products.
For the first time, companies domiciled in the UK will be able to follow the same criteria as their European neighbours to achieve a full listing, through use of PLUS’s well regulated exchange markets. In addition, once on the market, companies will be able to migrate between the Premium or Standard segments, without having to de-list and re-apply, subject to meeting certain criteria.
In welcoming the changes to the Listing Rules that have been announced today by the FSA, Paul Haddock said “the proposals will provide greater clarity with regard to the obligations of listed companies and a choice of options for those coming to market, which will help to lower the cost of a full listing in the UK”.
With regard to its PLUS-listed market, Mr Haddock added “PLUS is pleased to help issuers take full advantage of the added flexibility in the listing regime, by welcoming premium and standard listed issuers alike to its market for fully listed securities. PLUS-listed provides additional cost savings for companies and funds. It has a capped fee structure that enables companies to budget effectively and which doesn’t increase with the size of the issue”.