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LR 8.4 Role of a sponsor: transactions

Application for admission: new applicants

LR 8.4.1RRP

LR 8.4.2 R to LR 8.4.4 G2 apply in relation to an application for admission of equity shares 5if an applicant does not have equity shares 5already listed and:

255
  1. (1)

    the production of a prospectus or equivalent document 1is required; or

  2. (2)

    the application is accompanied by a certificate of approval from another competent authority; or

  3. (3)

    the application is accompanied by a summary document as required byPR 1.2.3R (8).

LR 8.4.2RRP

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. (1)

    the applicant has satisfied all requirements of the listing rules relevant to an application for admission to listing;

  2. (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. (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 rules3 on an ongoing basis;

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  4. (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. (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.

New applicants: procedure

LR 8.4.3RRP

A sponsor must:

  1. (1)

    submit a completed Sponsor's Declaration on an Application for Listing to the FSA2 either:

    2
    1. (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

    2. (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 document1;

  2. (2)

    submit a completed Shareholder Statement or Pricing Statement, as applicable, to the FSA by 9 a.m. on the day the FSA is to consider the application;

  3. (3)

    ensure that all matters known to it which, in its reasonable opinion, should be taken into account by the FSA in considering:

    1. (a)

      the application for listing; and

    2. (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 1or otherwise in writing to the FSA; and

  4. (4)

    submit a letter to the FSA setting out how the applicant satisfies the criteria in LR 2 (Requirements for listing - all securities),2 LR 6 (Additional requirements for premium listing (commercial company))5 and, if applicable, LR 15 or LR 16,2 no later than when the first draft of the prospectus or listing particulars 2is submitted (or, if the FSA is not approving a prospectus or if it is determining whether a document is an equivalent document1, at a time to be agreed with the FSA).

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[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 8.4.4GRP

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 shares.5

[Note: see LR 3.3.4 R]

5
LR 8.4.5R
2
  1. (1)

    [deleted]2

    2
  2. (2)

    [deleted]2

    2
  3. (3)

    [deleted]2

    2
LR 8.4.6R
  1. (1)

    [deleted]2

    2
    1. (a)

      [deleted]2

      2
    2. (b)

      [deleted]2

      2
  2. (2)

    [deleted]2

    2

Application for admission: further issues

LR 8.4.7RRP

LR 8.4.8 R to LR 8.4.10 G apply in relation to an application for admission of equity shares 5of an applicant that has equity shares5 already listed.

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LR 8.4.8RRP

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. (1)

    the applicant has satisfied all requirements of the listing rules relevant to an application for admission to listing;

  2. (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. (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).1

Further issues: procedure

LR 8.4.9RRP

A sponsor must:

  1. (1)

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

    1. (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; or1

      1
    2. (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 document1;

  2. (2)

    submit a completed Shareholder Statement or Pricing Statement, as applicable, to the FSA by 9 a.m. on the day the FSA is to consider the application; and

    2
  3. (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 1or 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 8.4.10GRP

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 equity shares5 to be allotted or admitted1. [Note: see LR 3.31]

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Class 1 circulars, refinancing and purchase of own equity shares

LR 8.4.11RRP

LR 8.4.12 R to LR 8.4.13 R apply in relation to transactions involving an issuer with 5 a premium listing 4 of equity shares 5that:

54
  1. (1)

    is required to produce a class 1 circular; or4

  2. (2)

    is producing a circular that proposes a reconstruction or a re-financing which does not constitute a class 1 transaction; or

  3. (3)

    is producing a circular for the proposed purchase of own shares;

    1. (a)

      which does not constitute a class 1 circular; and

    2. (b)

      is required by LR 13.7.1R (2) to include a working capital statement.

LR 8.4.12RRP

A sponsor must not submit to the FSA, on behalf of a listed company, an application for approval ofa 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. (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. (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;3 and2

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  3. (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.

Circulars: procedure

LR 8.4.13RRP

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

  1. (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. (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. (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.

4

Applying for transfer between listing categories

LR 8.4.14RRP

In relation to a proposed transfer under LR 5.4A, a sponsor appointed in accordance with LR 8.2.1A Rmust:

  1. (1)

    submit a letter to the FSA setting out how the issuer satisfies each listing rule requirement relevant to the category of listing to which it wishes to transfer, by no later than when the first draft of the circular or announcement required under LR 5.4A is submitted;

  2. (2)

    submit a completed Sponsor’s Declaration to the FSA for the proposed transfer on the day the circular or announcement is to be approved by the FSA and before it is approved; and

  3. (3)

    ensure that all matters known to it which, in its reasonable opinion, should be taken into account by the FSA in considering the transfer between listing categories have been disclosed with sufficient prominence in the circular or announcement referred to in LR 5.4A or otherwise in writing to the FSA.

[Note: The Sponsor’s Declaration for a transfercan be found on the UKLA section of the FSA website.]

LR 8.4.15RRP

A sponsor must not submit to the FSA on behalf of an issuer a final circular or announcement for approval or a Sponsor’s Declaration for a transfer, unless it has come to a reasonable opinion, after having made due and careful enquiry, that:

  1. (1)

    the issuer satisfies all eligibility requirements of the listing rules that are relevant to the new category to which it is seeking to transfer;

  2. (2)

    the issuer has satisfied all requirements relevant to the production of the circular required under LR 5.4A.4 R or the announcement required under LR 5.4A.5 R (whichever is relevant);

  3. (3)

    the directors of the issuer have established procedures which enable the issuer to comply with the listing rules, the disclosure rules and the transparency rules on an ongoing basis;

  4. (4)

    the directors of the issuer 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 issuer and its group; and

  5. (5)

    the directors of the issuer have a reasonable basis on which to make the working capital statement (if any) required in connection with the transfer.

LR 8.4.16RRP

LR 8.4.15R (3), LR 8.4.15R (4) and LR 8.4.15R (5) do not apply in relation to an issuer that was required to meet these requirements under its existing listing category.