ISE Provide Investment Funds With Markets Options – GEM And MSM

Author:Ms Tara O'Callaghan, Helen Daly and Fionnán Gannon
Profession:Dillon Eustace

 It is now over a year since the Irish Stock Exchange ("ISE") extended the scope of its successful Global Exchange Market ("GEM") to investment funds in response to industry concerns relating to the impact and application of the Statutory Audit Directive ("SAD") to those funds already listed on its Main Securities Market ("MSM").

The development was welcomed by fund promoters who can now avail of the ISE supervised market listings option for their investment funds.

Each market offers a substantially equivalent level of ISE supervision and transparency, but provides issuers with a choice based on the needs of their investors.

The option of a GEM listing addresses the requirements of funds wishing to retain the established benefits and recognition of an ISE listing, while maintaining their existing audit arrangements outside of the scope of the Statutory Audit Directive.

The GEM listing and ongoing requirements mirror in all material respects the MSM requirements but as GEM is not an EU regulated market, issuers will not be subject to the Statutory Audit Directive, Prospectus Directive or Transparency Directives.

Investors can take comfort that an investment fund listed on either the GEM or MSM of the ISE has met the suitability, diversification and ongoing compliance and reporting requirements of an internationally recognised listing authority with specific expertise in investment funds.

We have set out below a comparative analysis between MSM and GEM:

MSM GEM Market status under MiFID EU regulated market Exchange regulated market Competent Authority ISE - open ended funds Central Bank - closed ended funds under Prospectus Directive ISE Ongoing reporting obligations Open ended funds - MSM continuing obligation requirements - Chapter 7 of the MSM Code of Listing Requirements for Investment Funds

Please refer to our publication on these continuing obligations for open ended funds requirements at the link attached:

Irish Stock Exchange - Continuing Obligations Requirements - MSM

Ongoing reporting requirements and transparency materially equivalent to GEM requirements.

Closed ended Funds - ISE...

To continue reading