6 - Other Regulatory Requirements

Question 1

What percentage of votes are required to pass an ordinary resolution?

Answer 1

50%

Question 2

What percentage of votes are required to pass a special resolution?

Answer 2

75%

Question 3

What can a takeover panel do in the event of an unfair takeover?

Answer 3

Issue a public censure

Question 4

What is the minimum equity issue in a standard listing?

Answer 4

£30 million

Question 5

What level of control of a market in goods or services would suggest a substantial lessening of competition?

Answer 5

25%

Question 6

When must stock dealings be reported to the company?

Answer 6

-Dealings by directors or anyone connected to them
-Any dealings 3% or more of market cap
Both within 2 business days

Question 7

When a UK listed company releases profit figures and/or dividends which of the following methods do the FCA’s listing rules require the company to use?

Answer 7

By informing a primary information provider (PIP) without delay

Question 8

What are the 3 main requirements for a company that wants admission to the high growth segment market?

Answer 8

-10% min free float at IPO
-Being incorporated in the EEA
-Having historic revenue of 20% on a CAGR basis over 3 years

Question 9

What are the 2 minimum criteria for a premium listing?

Answer 9

• £30m market cap
• 3 years trading history

Question 10

What percentage must a predator buy in a company before the rest must sell their shares to them?

Answer 10

90%

Question 11

When a listed company receives notification of a 3% interest to whom must it disclose this information?

Answer 11

A Regulatory Information Service

Question 12

What body does a company seeking to apply for a listing on the Official List of the LSE apply to?

Answer 12

FCA

Question 13

What does an equalisation agreement do?

Answer 13

Ensures shareholders have similar power

Question 14

What 2 things must a firm going public do as per FCA rules?

Answer 14

Publish a prospectus and have it approved by the FCA

Question 15

How often should the board of directors evaluate the composition of the board under the UK Code for Corporate Governance?

Answer 15

Every year

Question 16

At what level is a mandatory bid required according to the Takeover Code?

Answer 16

30% of the voting capital

Question 17

When the directors of a listed company have price sensitive information to disclose to the market, which of the following must the company inform?

Answer 17

A Primary Information Provider (PIP)

Question 18

What is the main role of a NOMAD after a company is approved to be listed?

Answer 18

Provide advice on exchange rules

Question 19

Who needs to appoint a whistleblower champion?

Answer 19

Only deposit takers with assets greater than £250m need to appoint a whistleblower’s champion.

Question 20

How does voting work at shareholder meetings?

Answer 20

On a show of hands, each member present at the meeting who is entitled to vote has one vote. On a poll vote, due regard is given to those who hold a large number of shares

Question 21

What are the 3 scenarios where companies not have to publish a prospectus before selling shares to the public?

Answer 21

-Scrip issues
-Takeovers
-Issues up to 150 people in the UK

Question 22

Who are the 2 bodies that can decide whether or not a merger goes ahead?

Answer 22

-Competition and Markets Authority
-The Secretary of State

Question 23

In the Remuneration code, what is the condition for guaranteed bonuses?

Answer 23

Guarantees must only be given in exceptional circumstances to new hires for the first year of service

Question 24

What is the purpose of the Statement of Responsibility?

Answer 24

To show each Director has taken on a prescribed responsibility, as per the Senior Managers’ Regime

Question 25

Under the product governance rules what 3 are the responsibility of both the product manufacturer and the product distributor?

Answer 25

-Effective control over product governance processes
-Compliance function oversees the governance arrangements
-Relevant staff understand the products