Conditions for admissibility to listing and continuing obligations for the regulation of listed companies in Malta

Abstract

In seeking alternative sources of finance, companies can opt 'going public ' or in simpler terms seeking a listing on a stock exchange. Following the introduction of the Financial Markets Act (FMA), a company would approach the MFSA as the competent authority whose additional responsibility is of processing potential listing applications for admission on a Recognised Investment Exchange (RIE), and administering listing rules as appropriate. This dissertation will introduce the functions of the Listing Authority, who together with the listing committee has recently published the listing rules, which interalia, outline the requirements for admissibility of a company's securities on a RIE. In particular, it will scrutinise the conditions for admissibility and continual listing obligations, and so it should not be seen in isolation, in view of their impact on companies' future potential to list. Thus, a critical analysis in respect of the conditions and continual obligations incorporated in the newly published rules will be performed vis-a-vis the bye-laws of the Malta Stock Exchange (under the previous set-up) and the listing rules of other jurisdictions, and especially with EU Directives. Moreover, an assessment will be made in respect of the impact of the Listing Authority's decisions in view of EU Directives, and the permissibility of 'passporting' to foreign RIEs. In support of my study, a questionnaire/survey will be conducted amongst a chosen sample to those companies currently listed on the MSE, and also to future applicants following the issue of such rules. Finally, recommendations will be made in view of possible improvements to such listing rules.