Fondul Proprietatea’s London listing needs regulatory changes

Greg Konieczny, the manager of Romanian investment fund Fondul Proprietatea (FP), prefers that the fund’s secondary listing on the London Stock Exchange takes place through depository interests (DIs).

However, this largely depends on Romania’s Financial Supervisory Authority (ASF).

Fondul Proprietatea needs a new regulation by ASF that would allow it to use these instruments within 30 days, as the deadline for the secondary listing is April-May, reports local Ziarul Financiar. If this doesn’t happen, the listing will take place through global depository receipts (GDR), for which the ASF has already set up rules.

However, GDRs require a conversion fee for the owner that wants to convert them into regular shares, and a prospectus for listing, which is not the case for DIs.

In January this year, the shareholders in Fondul Proprietatea gave the fund’s manager a new deadline, July 10, to carry out the secondary listing in London.

The operation failed last year, as ASF did not pass a regulation on depository interests on time.

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