The London Stock Exchange has published Notice N02/16, which sets out the revised Admission and Disclosure Standards and High Growth Segment Rulebook. The revised Standards have been adopted in the same form as that proposed by the LSE in its consultation published on 4 December 2015 with the exception of the proposed amendments relating to depositary receipts. The LSE has proposed further amendments to the rule on depositary receipts and invites comments on these proposals by 11 April 2016.
The majority of the proposed changes to the Standards relate to the structure of the Standards and are of an administrative or clarificatory nature. The Standards have been restructured so that they may serve as a consolidated resource for issuers and advisers.
The definition of Main Market has been clarified to make clear that it encompasses all securities where application is made for admission to trading on London Stock Exchange’s EU Regulated Market, whether listed or unlisted. Further, the Specialist Fund Market has been renamed the Specialist Fund Segment (“SFS”), to clarify that it is a segment of London Stock Exchange’s Regulated Market, and that issuers must meet the associated requirements contained within the relevant EU directives and regulations for Regulated Markets. Securities admitted to the SFS (and High Growth Segment) are not admitted to the Official List.
The Executive Panel’s ability to impose a fine on issuers for breaches of the Standards has been increased from a maximum of £50,000 to £100,000 per breach. Public censures and fines over £100,000 per breach will continue to be heard by the Disciplinary Committee.