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1 Key points of the Prospectus Directive >>more>>
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3 Proposed changes to the AIM Rules >>more>>
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4 Update on the disclosure of Price Sensitive Information >>more>>
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5 Corporate Governance and the Combined Code >>more>>
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6 Corporate Governance Guidelines for Investment Trusts >>more>>
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7 Proposed amendments to the Listing Rules relating to Investment Companies >>more>> |
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| Public Companies Update October 2003 |
7 PROPOSED AMENDMENTS TO THE LISTING RULES RELATING TO INVESTMENT COMPANIES (INCLUDING INVESTMENT TRUSTEES)
In September 2003, the FSA outlined a number of legislative changes to the Listing Rules, Conduct of Business Rules and Model Code, relating to investment companies (including investment trusts) in order to increase investor protection. The majority of the changes to the Listing Rules come into effect from 1 November 2003, with the remainder coming into effect from 1 April 2005. The changes to the Conduct of Business Rules and Model Code come into effect from 1 January 2004 and 1 December 2003 respectively.
The main changes to the Listing Rules are:
1. A requirement that a UK listed investment company may not invest more than 10%, in aggregate, of its gross assets (at the time the investment is made) in other UK listed investment companies unless those investment companies themselves have a stated investment policy to invest no more than 15% of their gross assets in other UK listed investment companies; (note: with effect from 1 April 2005)
2. Increased portfolio disclosure requiring on the last business day of each calendar month, a list of all investments in other investment companies (including listed investment interest) which do not have a stated investment policy to invest no more than 15% of their assets in other UK listed investment companies (including listed investment trusts); and also, on the last business day of each quarter a list of all investments with a value greater than 5% of the company's gross assets and at least the top 10 investments; (note: with effect from 1 November 2003)
3. Changes to the rules relating to the relationship between the investment company and its manager to increase the independence of the Company from its manager; (note: with effect from 1 April 2005)
For more detail on the legislative changes, see the FSA's Handbook Notice 25 at
http://www.fsa.gov.uk/pubs/handbook/hb_notice25.pdf.
If you require further information on any matter covered in this note, please contact your principal contact at Charles Russell or Simon Gilbert, Katy Knight, Clive Hopewell or Alexander Keepin (London), Francis Rundall or Richard Norton (Cheltenham) or Geoff Sparks (Guildford) and on 0207 203 5000.
Please note that the summaries above are a general indicative guide only. They are not exhaustive. This information has been prepared by the firm as a service to our clients. As it is a general guide, we recommend that you seek professional advice before taking action. No liability can be accepted by the firm for any action taken or not taken as a result of this information. The firm is not authorised under the Financial Services and Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Law Society. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide. |
