Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

LR 6.6 Control of the business

LR 6.6.1RRP

1An applicant must demonstrate that it exercises operational control over the business it carries on as its main activity.

LR 6.6.2GRP

1LR 6.6.1R is intended to ensure that the protections afforded to holders of holders of equity shares by the premium listing requirements are meaningful.

LR 6.6.3GRP

1Factors that may indicate that an applicant does not satisfy the requirement in LR 6.6.1R include where the applicant’s business consists principally of holding shares in entities that it does not control, including entities where the applicant:

  1. (1)

    owns a minority holding of shares; or

  2. (2)

    is only able to exercise negative control; or

  3. (3)

    exercises control subject to contractual arrangements which could be altered without the applicant’s agreement or could result in a temporary or permanent loss of control.