PRM 1.3 Transferable securities exempt from PRM

The following types of transferable securities are exempt from the rules in PRM and therefore an admission to trading on a regulated market of the transferable securities listed below will not be subject to the requirement for a prospectus in PRM 1.4:

(1) units issued by a collective investment undertaking other than the closed-end type;

(2) non-equity securities:

     (a) issued by any of the following:

          (i) the government of any country or territory;

          (ii) a local or regional authority of any country or territory;

          (iii) a public international body; or

          (iv) the European Central Bank or the central bank of any State; or

      (b) that are instruments of Islamic finance issued by a special purpose vehicle established by the government of any country or territory or by the European Central Bank or the central bank of any State where the non-equity securities are backed by the relevant government or central bank in such a way that the economic effect is the same as though the relevant government or central bank were the issuer of the non-equity securities;

(3) transferable securities unconditionally and irrevocably guaranteed by the government or a local or regional authority of any country or territory;

(4) non-equity securities that are instruments of Islamic finance over which a credit support arrangement exists, supported by the government of any country or territory, that is equivalent in its economic effect to the guarantee referred to in (3); or 

(5) money-market instruments.

For the purposes of PRM 1.3.1R(1): 

(1) ‘units issued by a collective investment undertaking’ has the meaning in regulation 6(2)(b) of the Public Offers and Admissions to Trading Regulations – namely, securities issued by a collective investment undertaking as representing the rights of the participants in such an undertaking over its assets; and

(2) ‘collective investment undertaking other than the closed-end type’ has the meaning in regulation 6(2)(a) of the Public Offers and Admissions to Trading Regulations – namely, unit trusts and investment companies with both of the following characteristics:

      (a) they raise capital from a number of investors, with a view to investing it in accordance with a defined investment policy for the benefit of those investors; and 

      (b) their units are, at the holder’s request, purchased or redeemed, directly or indirectly, out of their assets.