The infant Third Market

Article Abstract:

A third securities market in London was founded in Jul 1987. The Third Market was intended to correct two deficiencies in unregulated, over-the-counter markets: restricted liquidity, and irresponsible stock introductions. Listing requirements are not strict, but rules governing sponsorship are. There must be at least two market-makers for each stock on the Third Market. The Third Market has not had the same degree of acceptance as the Unlisted Securities Market (USM). This may change as the quality of companies in the Third Market improves and the Third Market comes to be perceived as a specialist market, rather than a listing of weak companies. The advantages and disadvantages to listing on the Third Market are compared to those for the USM.

author: Keeling, Damian
Accounting and auditing, Securities

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Professional indemnity insurance regulations

Article Abstract:

The International Federation of Accountants suggests in a statement from its Institute that accountants take on indemnity insurance to at least the level of two and one-half times gross annual fee income, or 25 times their largest single fee, whichever is the larger. Other areas discussed include: authority and commencement, definitions, approved insurers, qualification for approval, prescribed professional indemnity insurance cover applications, qualifying insurance, minimum indemnity limits, practice mergers, cessation of practices, practices for which insurance is unavailable, constructive declinature, additional conditions for entry into assigned risk pools, maximum time allowed in a pool, and reporting.

Standards, Liability insurance, Insurance, International Federation of Accountants, Indemnity

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How to avoid the trap of insider dealing

Article Abstract:

The growth of Britain's securities markets has created a need for stronger regulation, especially in the area of insider trading. The Company Securities Act of 1985 controls the use of unpublished, price-sensitive information. Procedures for complying with the law and protecting a company's employees and reputation are discussed. The first step is for senior management to set a high standard of financial probity. The company should then set down explicit procedures for employees who are privy to inside information. A final step is to identify individuals responsible for handling sensitive information and preventing abuses.

author: Manterfield, Kenneth
Prevention, Insider trading in securities, Insider trading (Securities), Great Britain

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subjects list: United Kingdom, Stock-exchange, Stock exchanges, Laws, regulations and rules, Accounting
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