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LR 7.2 The Listing Principles

LR 7.2.1RRP

The Listing Principles are as follows:

Principle 1

A listed company must take reasonable steps to enable its directors to understand their responsibilities and obligations as directors.

Principle 2

A listed company must take reasonable steps to establish and maintain adequate procedures, systems and controls to enable it to comply with its obligations.

Principle 3

A listed company must act with integrity towards holders and potential holders of its listed equity shares.2

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Principle 4

A listed company must communicate information to holders and potential holders of its listed equity shares2 in such a way as to avoid the creation or continuation of a false market in such listed equity shares.2

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Principle 5

A listed company must ensure that it treats all holders of the same class of its listed equity shares2 that are in the same position equally in respect of the rights attaching to such listed equity shares.2

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Principle 6

A listed company must deal with the FCA in an open and co-operative manner.

Guidance on Principle 2

LR 7.2.2GRP

Principle 2 is intended to ensure that listed companies have adequate procedures, systems and controls to enable them to comply with their obligations under the listing rules and disclosure rules and transparency rules. In particular, the FCA considers that listed companies should place particular emphasis on ensuring that they have adequate procedures, systems and controls in relation to:

  1. (1)

    identifying whether any obligations arise under LR 10 (Significant transactions) and LR 11 (Related party transactions); and

  2. (2)

    the timely and accurate disclosure of information to the market.

LR 7.2.3GRP

Timely and accurate disclosure of information to the market is a key obligation of listed companies. For the purposes of Principle 2, a listed companywith a premium listing1 should have adequate systems and controls to be able to:

1
  1. (1)

    ensure that it can properly identify information which requires disclosure under the listing rules or disclosure rules and transparency rules in a timely manner; and

  2. (2)

    ensure that any information identified under (1) is properly considered by the directors and that such a consideration encompasses whether the information should be disclosed.

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