PLC stuff

Question 1

What are the two market functions provided by the LSE?

Answer 1

Primary market to raise capital and secondary market for investors to buy and sell shares

Question 2

Why are applications made to both the UKLA and LSE required to list on the main market?

Answer 2

Application for listing is made to the UKLA, admission to trading on the Main market is to the LSE. The Main Market is not the only market

Question 3

What is the purpose of comply or explain?

Answer 3

The Code represents best practice in the field of corporate governance, however, not all standards are necessarily applicable to every listed company. Therefore, explaining why a provision does not apply can justify an omission

Question 4

What are the 7 GDPR principles?

Answer 4

1. Lawfulness, fairness and transparency
2. Purpose Limitation
3. Data minimisation
4. Accuracy
5. Storage Limitation
6. Security
7. Accountability

Question 5

GDPR is supplemented in the UK by which legislation?

Answer 5

Data Protection Act 2018

Question 6

What are the differences between AIM and full listing?

Answer 6

• Companies without trading record
• No minimum capital to be offered
• Fewer Regulations

Question 7

Name the three sets of rule from the FCA

Answer 7

• Listing Rules
• Prospectus Rules
• Disclosure & Transparency Rules

Question 8

Name some listing requirements

Answer 8

• Revenue earning
• Key executives contributed to the company’s activities
• Capable of making decisions independently
• Shares are freely transferred
• First shares aggregate value is 700k
• 3 year trading record
• 25% of shares should be in the public hands

Question 9

Name some continuing obligations

Answer 9

• Act with integrity
• Be open with the FCA
• Ensure directors aware of their director duties
• Prevent a false market
• Shareholders are treated equally

Question 10

Name some examples of when a listed company must notify the LSE of significant events

Answer 10

• Change of director
• Board decisions
• Dates of board meetings to consider dividends
• When someone acquires 3% shareholding + every other 1%

Question 11

What are the Prospectus Rules?

Answer 11

They set out the requirements for the issue of a prospectus for an offer of transferable securities to the public in the UK.
They set out the form, content and approval requirements for prospectuses and were contained in the Prospectus Rules sourcebook.

Question 12

Team of advisors?

Answer 12

Sponsor, Broker, Lawyers, Registrar

Question 13

What is inside information?

Answer 13

Asymmetric information

Question 14

What is dematerialisation?

Answer 14

Electronic settlement - by 2023 no more share certifs