LR 15.2 Requirements for listing

To be listed, an applicant must comply with the following:

1. (1)

   those responsible for managing the investments must have adequate experience;

2. (2)

   there must be an adequate spread of investment risk;

3. (3)

   the applicant must be a passive investor and must not control or seek to control, or be actively involved in the management of, any companies or businesses in which it invests; and

4. (4)

   the applicant must not, to a significant extent, be a dealer in investments.

An investment company must either:

1. (1)

   satisfy the conditions set out in LR 6.1.3 R (Audited accounts for three years) and LR 6.1.4 R (Nature and duration of business activities); or

2. (2)

   satisfy the FSA that its directors and investment managers have sufficient and satisfactory experience in the management of investments of the type in which the company proposes to invest.

LR 6.1.16 R (Working capital) does not apply to an investment company.

The board of directors or equivalent body of an investment company must be able to demonstrate that it will act independently of any investment managers of the investment company.

In complying with LR 15.2.6 R:

1. (1)

   a majority of the board or equivalent body must not be:

   1. (a)

      directors, employees or professional advisers to other investment companies that are:

      1. (i)

         managed by any such investment managers; or

      2. (ii)

         managed by any other company in the same group as any such investment managers; or

   2. (b)

      directors, employees, partners, officers, or professional advisers to any such investment manager or any other company in the same group as any such investment manager;

2. (2)

   no more than one director, partner, employee, or professional adviser to each such investment manager or any other company in the same group as any such investment manager may be a director of the investment company; and

3. (3)

   a director as described in paragraph (2) must be subject to annual re-election by shareholders.

In complying with LR 15.2.8 G the chairman of the board must not be:

1. (1)

   a director, employee, officer, partner or professional adviser to any investment manager of the investment company; or

2. (2)

   a director, employee, officer, partner, or professional adviser to any other company in the same group as any investment manager of the investment company; or

3. (3)

   a director of any other investment company managed by any of the same investment managers; or

4. (4)

   a director of any other company in the same group as any of the same investment managers.

1. (1)

   No more than 10%, in aggregate, of the value of the total assets of the issuer at the time of admission may be invested in other listed investment companies or listed investment trusts.

2. (2)

   The restriction set out in paragraph (1) does not apply to investments in investment company or investment trusts which themselves have stated investment policies to invest no more than 15% of their total assets in other listed investment companies or listed investment trusts.

The distribution of surpluses, as dividend, arising from the realisation of investments must be prohibited and a provision to this effect must be contained in the issuer's constitution.

An open-ended investment company that:

1. (1)

   is an unrecognised scheme; and

2. (2)

   is treated as a closed-ended investment company;

must comply with the requirements for listing, the continuing obligations that are applicable to investment companies and the requirements set out in LR 15.3.2 G, LR 15.7.4 R and LR 15.7.10 G.

To be listed, an investment trust must comply with LR 2 and LR 6 with the following modifications and additional conditions:

1. (1)

   the requirements set out in LR 15.2.2 R to LR 15.2.9 R;

2. (2)

   LR 15.2.10R (1); and

3. (3)

   LR 15.2.11 R.