In a welcome development, the London Stock Exchange ("LSE") has extended their offering for non-UCITS ETFs to allow non-UCITS retail schemes ("NURS") and qualified investor alternative investment funds ("QIAIFs") admission to trading on the LSE. There are two listing routes available:
- Apply to the UK Listing Authority ("UKLA") for an official listing to the LSE for admission to trading on the Main Market. This route is available for NURS, qualified investor schemes ("QIS") and alternative investment funds ("AIFs").
- Apply to the LSE for admission to trading on the Main Market based on an existing European Economic Area ("EEA") listing. This alternative route to trading on the LSE is available for AIFs such as QIAIFs that are recognised as an overseas scheme by the UK Financial Conduct Authority ("FCA") in accordance with section 272 of the UK Financial Services and Markets Act 2000.
Option 2 is somewhat similar to the streamlined, cost-effective route to trading that currently exists for UCITS that are listed on the official list on an existing EEA stock exchange. Once FCA recognition has been granted, the following documents are required to be sent to email@example.com eleven days prior to the intended date of listing:
- Trading form (static data form);
- Prospectus/pricing supplement;
- Evidence of FCA recognition status; and
- Form 1.
Fees are the same as UCITS ETFs. Admission fee of £5,000 per individual security is capped at £20,000 for up to 20 securities admitted to trade on the same day. Annual fees are based on the market capitalisation of the ETFs.