Obtain either FCA authorisation or recognition
FCA authorisation for admission
- Taking this route requires the fund to be an authorised collective investment scheme with the legal form of an authorised unit trust scheme (AUT), an investment company with variable capital (ICVC) or an authorised contractual scheme (ACS). The authorised collective investment scheme must be established in the UK and utilise the Undertakings for Collective Investment in Transferable Securities (UCITS) scheme.
FCA recognition for admission
- For this route the fund must be complaint with one of the FCA-recognised schemes ie schemes established outside the UK that can be promoted to the general public in the UK. UCITS schemes are marketable in the UK under section 264 of FSMA (schemes constituted in other EEA states).
- Both routes to market utilise the UCITS scheme, thereby benefiting from the principle of mutual recognition within the EU and a high level of acceptance by regulators worldwide.
- The review for UCITS compliance and obtaining recognition status are conducted in one submission by the FCA Collective Investment Scheme Department.
- The fund will have to provide, among others, the following documents:
- A certificate of UCITS compliance from the home regulator
- A copy of the fund prospectus
- A recognition application form (acquired from the FCA)
- Details of the fund, i.e. registered office address, marketing plan etc.
- Prospective fund issuers are advised to seek their own advice on admitting investment funds in to the UK.
Submit application to London Stock Exchange
London Stock Exchange currently maintains criteria on fund characteristics to ensure they are favourable to market conditions and maintaining liquidity:
- The underlying vehicle for the ETF is an open-ended investment fund
- The fund is FCA-authorised or recognised, e.g. UCITS
- The ETF is either settleable in CREST or Euroclear Bank, depending on the trading service utilised. ETFs seeking admission to LSEG will utilise either SETS or Trading Service for ETFs
- Euroclear Bank settlement. This will depend on the settlement venue and trading/settlement currency requirements.
The application for admission to LSEplc can be administered by the fund’s sponsor or directly by the issuer. It is necessary to arrange for the creation of the relevant trading codes (i.e. once it has been determined what funds are to admit) as soon as possible in the admission process
International securities identification numbers (ISINs) are normally allocated by the country of domicile of the issuer. LSEplc is then responsible for allocating a stock exchange daily official list (SEDOL) code, which is a unique instrument identifier. Please email the pricing supplement(s) to this email address and allow 48 hours for these to be assigned.
A tradable instrument display mnemonic (TIDM) is the three- or four-character identifier specific to London Stock Exchange. Issuers may request a specific TIDM, which will be issued provided it is not already in use or reserved. Once reserved, these are held for a period of six months. Requests should be made to the Market Admission and Data Management team, who manage new admissions to London Stock Exchange. Please email the issuer name and the description of each line (multicurrency lines require unique TIDMs), making it clear that it is a TIDM request, here.
Obtain approval from London Stock Exchange
In order to admit an ETF to trading the following documentation will be required.
For all funds:
- Form 1 (draft)
- Static data form
- Certificate of UCITS compliance from the home CA or other FCA-recognised, non-UCITS scheme
- Prospectus/pricing supplement.
For funds admitting on the basis of an EEA listing utilising UCITS scheme:
- Stamped listing particulars from an EEA CA
- Evidence of FCA recognition status.
The above are required from the issuer five business days (12.00pm deadline) before admission.
* Number of days given are for sub-funds only. Parent funds still require the full 11 business days.
For all funds:
For UKLA listed funds:
The above are required from the issuer three business days (12.00pm deadline) before admission.