On December 7, the UK Financial Services Authority (FSA) published its policy statement PS07/20 containing its final rules following three rounds of consultations in connection with its Investment Entities Listing Review.

The FSA is modernizing the UK listing rules for investment entities and introducing a more principles-based regime. This will allow the listing of investment entities with alternative investment strategies, while retaining appropriate levels of investor protection.

The existing Chapter 14 of the listing rules (which deals with EU Prospectus Directive-minimum listings of equity securities) will be limited and not be available to investment entities. Additional amendments will be made to the new Chapter 15 of the listing rules and the new rules will create a unitary listing system for investment entities.

The changes to the Listing Rules will take effect on March 6, 2008.  www.fsa.gov.uk/pubs/policy/ps07_20.pdf