[Last updated: 1 January 2024, unless otherwise noted]
Under the Listing Rules, an issuer of equity securities, preference shares or certificates representing equity securities must have a sponsor when it makes an application for listing and for the duration of such listing.
Unlike the UK Listing Rules, the Listing Rules do not impose any particular obligations on a sponsor on a continuous basis and do not require the sponsor to actively supervise an issuer, but a sponsor will generally only act where it can be sure the issuer will comply with the Listing Rules because of reputational risk. The following list sets out some of the specific circumstances in which the sponsor is required to take particular action under the Listing Rules:
Inside Information
Once listed, an issuer will be subject to a continuous disclosure requirement designed to prevent the creation of a false market in the company's securities under the Market Abuse Regulation (EU) No. 596/2014 (MAR) and the Market Abuse Directive 2014/57/EU. The company will be required to publicly disclose any inside information that concerns the company.
Broadly, inside information is information which:
In determining the likely price significance of information, a company should assess whether the information in question would be likely to be used by a reasonable investor as part of the basis of his or her investment decisions.
Inside information should be disclosed through a Regulatory Information Service and the company must make the information available on its internet site and keep it there for a period of five years.
A company whose financial instruments are also listed or admitted to trading on any foreign stock exchange or regulated market must take reasonable care to ensure that the disclosure of inside information is synchronized as closely as possible in each jurisdiction.
A company may delay the disclosure of inside information where: (i) the issuer considers that public disclosure of inside information might prejudice the issuer's legitimate interests; (ii) to do so would not be likely to mislead the public; and (iii) the issuer is able to ensure the confidentiality of the information.
Other Disclosures
In addition to the continuous disclosure regime there are a number of specific requirements that listed companies and certain other persons must comply with. These include:
The disclosure must state the effective date of the change if it is not with immediate effect. If the effective date of the change is not yet known this should be stated and a further disclosure made as soon as the effective date has been decided. In the case of an appointment, the notification must also state whether the position is executive, non-executive or chairman and the nature of any specific function or responsibility.
or an appropriate negative statement. Disclosure must be made as soon as possible following the decision to appoint the director and in any event within five business days of the decision.
Public disclosure for Irish-listed companies is typically made through Regulatory Information Services permitted by Euronext Dublin. These organizations receive announcements from issuers and then disseminate the full text of these to secondary information providers such as Bloomberg and Reuters. Disclosure to a Regulatory Information Service will fulfill a company's requirement for public disclosure. In some circumstances, a listed company is also obliged to make information available on its website (such as its annual report and results of shareholder meetings).
Secondary Listings
Foreign companies and Irish companies with primary listings elsewhere are generally the only types of companies that can avail of a secondary listing on Euronext Dublin. A company with a secondary listing is subject to fewer initial and ongoing obligations, which include:
Financial statements
A company must publish an annual financial report not later than four months after the end of its financial year. The report must remain publicly available for at least 10 years. The report must include the audited financial statements, a management report and responsibility statements.
For a company which is required to prepare consolidated accounts, the audited financial statements must comprise consolidated accounts prepared in accordance with IFRS and accounts of the parent company prepared in accordance with the laws of the State in which the parent is incorporated.
These financial statements must be audited in accordance with the auditing standards applicable in an EEA State and the audit report must be reproduced in full as part of the annual financial report.
Where a foreign company is incorporated in a country or territory that is not an EEA State, it must ensure that the person who provides the audit report is either:
The management report must contain a fair review of the company's business and a description of the principal risks and uncertainties facing the company and must otherwise comply with more detailed requirements set out by the CBI in its role as competent authority under the Transparency Directive (Directive 2004/109/EC).
Responsibility statements must be made by the persons responsible within the company (whose names and functions must be clearly indicated) and set out that, to the best of the knowledge of each person making the statement, the financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and its consolidated undertakings, taken as a whole; and the management report includes a fair review of the development and performance of the business and the position of the company and its consolidated undertakings, taken as a whole, together with a description of the principal risks and uncertainties that they face.
All listed companies must also include in its annual report a report to the shareholders by the board containing details of the unexpired term of the director's service contract of any director proposed for election or re-election at the next annual general meeting, or a statement that such director has no service contract.
The auditors' report on the company's financial statements must cover some of these disclosures. If the company has not made the requisite disclosures, the report must include, to the extent possible, a statement giving details of the non-compliance.
The EU Corporate Sustainability Reporting Directive is applicable in Ireland. For financial years commencing on or after 1 January 2024 (reporting year 2025), large issuers with over 500 employees listed on Euronext Dublin will be in scope and will have to include additional sustainability information in the directors’ report in accordance with European Sustainability Reporting Standards.
Interim financial statements
As well as the annual financial report described above, the company must also publish a half-yearly financial report covering the first six months of the financial year. The report must be published not later than three months after the end of the period to which it relates, and must remain publicly available for at least 10 years.
The half-yearly financial report must contain: a condensed set of financial statements, an interim management report and responsibility statements.
The half-yearly financial report must contain (a) an indication of important events that have occurred during the first six months of the financial year (and their impact on the condensed set of financial statements); and (b) a description of the principal risks and uncertainties facing the company for the remaining six months of the financial year and must otherwise comply with the detailed requirements set out by the CBI.
If the half-yearly financial report is not audited, a company must make a statement to this effect in the report.
The accounting policies and presentation applied to the half-yearly figures must be consistent with those applied in the latest published annual accounts, unless Euronext Dublin otherwise agrees or the accounting policies and presentation are to be changed in subsequent annual accounts.
Certain companies active in the extractive and primary logging of forestry industries are expected to be required to prepare a report annually on the payments that they make to governments each financial year for financial years beginning on or after 1 January 2015.
Insider dealing
The Irish market abuse regulations (European Union (Market Abuse) Regulations 2016, as amended) reflects Ireland's implementation of the Market Abuse Regulation (EU) No. 596/2014 (MAR) and the Market Abuse Directive 2014/57/EU. The Irish market abuse regulations provide that it is a criminal offence for an individual who has inside information, to deal in securities on Euronext Dublin or another regulated market, or through a professional intermediary, or to encourage another person to deal in such securities. It is also a criminal offence for an insider to disclose the information to another person, other than in the proper performance of their employment, office or profession. For an offence to be committed, the individual must know that the information is inside information and he must have knowingly acquired it from an inside source. There are also offences of encouraging dealing and disclosure by persons who have inside information.
For these purposes, inside information is, broadly speaking, specific or precise unpublished information relating to a particular issuer or particular securities which, if made public, would have a significant effect on the price of any securities. It should be noted that a director who knowingly has inside information about his company, or any other company with which his company has dealings, would be an insider for the purposes of the insider dealing legislation.
The penalty for an offence under the Irish market abuse regulations is a maximum fine of €10 million (approximately US$11.05 million) or imprisonment for a maximum of 10 years, or both. There are a number of defenses, but it should be noted that these are normally restrictively interpreted and the burden of proof lies with the defendant.
Market abuse
The civil prohibition on market abuse in the Irish market abuse regulations works in tandem with the criminal sanctions against insider dealing and market manipulation and extends the reach of the regulator to all market participants (whether or not authorized).
Under the Irish market abuse regulations, the CBI, as regulator of the financial markets, is empowered to decide that certain conduct constitutes market abuse. It can then impose fines of up to €15 million (approximately US$16.58 million), or 15% of the total annual turnover of a legal person, or up to €5 million (approximately US$5.53 million) in the case of an individual, and/or other penalties.
Broadly speaking, market abuse may be described as insider dealing, the unlawful disclosure of inside information and market manipulation in relation to any qualifying investments admitted to trading on a prescribed market or in respect of which a request has been made for admission.
MAR provides that there are certain safe harbors from market abuse for certain behavior including buy-backs of securities and stabilisation, provided the specified conditions are satisfied.
The CBI may institute proceedings not only for direct engagement in market abuse but also for acts or omissions which require or encourage another to engage in behavior which would constitute market abuse if engaged in by the person who encouraged the other.
It should be noted that proof of intent to engage in market abuse is not required: it is sufficient that the behavior satisfies the criteria for market abuse.
The requirements in this section do not vary from what would be expected of a domestic company.
Dematerialization of shares
The EU Central Securities Depositories Regulation (EU) No. 909/2014 is directly applicable in Ireland and requires new issues of transferable securities to be represented in dematerialized (i.e. book-entry) form from 1 January 2023. Shares issued before 1 January 2023 must be dematerialized by 1 January 2025.