In 2005, the introduction of the European Prospectus and Transparency Directives changed the regulatory landscape of securities admitted to regulated markets in the European Union. This legislative change provided the catalyst for the development of the PSM, with market participants and the Financial Services Authority (FSA).
The PSM is a listed, exchange-regulated market, which means issuers benefit from a flexible and pragmatic approach to regulatory requirements, whilst institutional investors gain the assurance of investing in listed securities. Since the market opened in July 2005, issuers have been attracted by the PSM’s proportionate regulation and the opportunity to use domestic accounting standards.
The benefits for issuers listing in London
The creation of the Professional Securities Market provides an important choice for issuers. Companies wishing to raise capital, without being restricted in the type or value of securities they issue, may do so without the additional cost of following a retail or equity regime. Issuers of debt and DRs are not required to report historical financial information to IFRS or an EU approved equivalent standard either in listing documents or as a continuing obligation requirement, as the FSA allow these issuers to use their domestic accounting standards following the implementation of the Transparency Directive in January 2007.
This site will be continually updated with further information about the PSM, check back here regularly for updates.
For further information on the PSM, please contact:
Oliver Carter - PSM depositary receipts queries
Tel: +44 (0)20 7797 1008
Email: ocarter@londonstockexchange.com
Darko Hajdukovic - PSM debt queries
Tel: +44 (0)20 7797 3306
Email: dhajdukovic@londonstockexchange.com