Capitalisation Issue

In respect of the following Rules:

6.2.9.2 No issuer shall proceed with a capitalisation issue involving a payment up of securities out of reserves, unless it has obtained the prior written confirmation of its auditors that its reserves are sufficient for this purpose.

7.2(1) Investment vehicles may bring securities to listing by means of the following methods: …. g) capitalisation issue - Reference should be made to Guidance Note 7.2(i)(iii) which states that “No investment vehicle shall proceed with a capitalisation issue involving a payment up of securities out of reserves, unless it has obtained the prior written confirmation of its auditors that its reserves are sufficient for this purpose.”

Where an Auditors’ confirmation is not required under the relevant laws of the Issuers’ country of domicile, the Authority will consider requests for derogation from these Rules provided that all other statutory and constitutional requirements of the Issuer have been met (e.g. an opinion on whether the Issuer satisfies a solvency test may be required to be completed by the Directors of the Issuer).

The Authority may ask for copies of any relevant documents.

This Guidance Note is for information only and may be amended.

Early consultation with the Authority on all aspects of suitability and eligibility of an application for listing should be sought as soon as practicable.

For more information please contact us.