2017年-FCA英国金融行为监管局_ukla_tn_424_1_removal_from_the_official_list_of_listed_equity_shares_of_individual_funds_of_oeics_2页_132kb

Regulator Assessment Summary: UKLA TN424.1 - Removal from the Official List of Listed Equity Shares of Individual Funds of Open-Ended Investment Companies (OEICs)

Core Content

The document outlines a technical note issued by the UK Listing Authority (UKLA) in response to the Financial Conduct Authority's (FCA) proposal, titled UKLA TN424.1 - Removal from the Official List of listed equity shares of individual funds of Open-Ended Investment Companies (OEICs). This guidance clarifies the procedures for removing listed equity shares of individual sub-funds from the Official List when they have matured or ceased to exist.

The guidance is part of the FCA's regulatory framework, which includes the Listing Rules, Prospectus Rules, and Disclosure and Transparency Rules. It also incorporates the requirements of the Markets in Financial Instruments Directive (MAR), a European regulation that applies directly in the UK.

Main Points

• Lead Regulator: Financial Conduct Authority (FCA)
• Date of Assessment: May 2017
• Commencement Date: March 2017
• Origin: Domestic
• Cutting Red Tape Review: Not included
• Scope of Application: National

Regulatory Context

• OEICs are collective investment schemes managed on behalf of investors, with the ability to redeem shares in sub-funds when they are closed.
• Unlike commercial companies, OEICs do not have a specific Listing Rule governing the removal of sub-funds from the Official List.
• The FCA has outlined that in such cases, the administrative procedure set out in DEPP 2.5.11G will be followed for the removal of securities that have matured or ceased to exist.
• This contrasts with commercial companies, which must issue a circular and obtain shareholder approval before removing a class of listed equity shares.

Affected Businesses

• Type of Business: Open-Ended Investment Companies (OEICs) with a premium listing of equity shares on the Official List.
• Estimated Number of Affected Businesses: Around 12 OEICs, with a total of 274 sub-funds.
• Actual Impact: Only a subset of these OEICs will be affected, depending on the frequency with which they seek to remove sub-funds from the Official List.

Cost and Benefit Analysis

Cost Estimate

• Assumption: Compliance staff are experienced and work at an estimated rate of £48/hour.
• Time Required: For the approximately 12 OEICs, it is estimated that each will spend about 30 minutes to read, understand, and disseminate the guidance note.
• Total Estimated Cost: £3001 for all 12 OEICs.

Benefit Estimate

• The guidance note aims to clarify existing practices and provide better understanding of how the FCA interprets the rules regarding the removal of sub-funds.
• It does not impose new procedures but rather confirms the current administrative approach.
• This reduces ambiguity and provides a clear pathway for OEICs to follow when removing sub-funds.

Additional Information for BIT Score Validation

• The technical note is one page long and serves as a clarification of existing procedures.
• It was subject to public consultation and finalised in March 2017.
• The cost estimate is based on a prudent assumption of £100,000 annual salary for compliance staff, split into 260 working days at 8 hours per day.
• The BIT score is 0, indicating that the regulatory change is not expected to impose significant costs or benefits on the business.

Summary Table

This summary provides a clear overview of the regulatory activity, its implications, and the associated costs and benefits for the affected businesses.