Investment trusts: conditions for approval: official UK listing
Each class of the company’s ordinary share capital (see CTM60180) must be included in the official UK list within the meaning of Part 6 Financial Services and Markets Act 2000 (see (g) of CTM60310) throughout the accounting period. Stock exchanges other than the London Stock Exchange are now able to offer markets trading officially listed shares and it is no longer the case that investment trusts must be listed on the London Stock Exchange.
The listing rules, which are included in the Financial Services Authority’s (‘FSA’) Handbook, allow a company’s listing to be cancelled or suspended in certain circumstances. The suspension of listing is usually for a temporary period, during which the company must continue to comply with all applicable listing rules subject to any variation agreed by the FSA. You should accept that a company whose listing is suspended continues to meet the listing condition. A company whose listing is cancelled will cease to meet the condition, but see the section on liquidation below.
Listing during first period following incorporation or conversion
In practice there can be a delay between the incorporation of a new company, or the conversion of a private company to a public company, and admission to the official UK list. You can treat the listing condition as being met in these circumstances provided the company is admitted to the Official List within one month of the start of its first accounting period or, in the case of a conversion, the first accounting period following that event.
Where an investment trust is placed in liquidation and its official UK listing is cancelled before the end of the the first accounting period following the appointment of the liquidator but after it has disposed of all of its assets, you may accept that the listing condition is met and should not refuse approval on that ground. Cases of doubt or difficulty should be referred to CTIS (Investment Trusts), setting out the full facts.