PTM Levy
The Panel on Takeovers & Mergers (PTM) has notified all market participants that the PTM Levy will be increasing from £1.00 to £1.50 from Monday 2nd December 2024.
The Panel on Takeovers & Mergers (PTM) has notified all market participants that the PTM Levy will be increasing from £1.00 to £1.50 from Monday 2nd December 2024.
The PTM Levy is payable on trades, both purchases and sales, in securities of companies which are incorporated in the United Kingdom, the Channel Islands or the Isle of Man and whose shares are admitted to trading on a UK regulated market or a UK multilateral trading facility.
The PTM Levy is payable on contracts where the total consideration of the relevant trade is greater than £10,000 (or equivalent in any other currency). It applies to trades in:
- equity share capital, whether voting or non-voting – for these purposes, equity share capital is share capital that has an unlimited right to participate in the profits of the company.
- securities convertible into equity share capital.
- transferable securities that give the holder the right to subscribe for equity share capital, including warrants, provisional allotment letters and nil paid rights; and
- American Depository Receipts and Global Depository Receipts in respect of any of the securities described above.
The PTM Levy is not payable on trades in:
- debentures and other debt securities
- preference shares
- Permanent Interest Bearing Securities
unless they are securities which are convertible into, or which will give the holder the right to subscribe for, equity share capital.
The PTM Levy is not payable on trades in securities of open-ended investment companies, including exchange traded funds.
The PTM Levy is not payable on placings of new securities. The PTM Levy is payable on ‘when issued’ trading.
The money raised by the PTM Levy on trading in UK listed Shares and Investment Trusts is used to help fund the Takeover Panel. This is the UK’s regulatory body responsible for administering the takeover rules. Its purpose is to ensure all shareholders are treated equally during takeover bids.
Clients will see the higher PTM Levy amount shown on contract notes for relevant trades from Monday 2nd December 2024.
Source: Takeover Panel on Mergers & Acquisitions website
November 2024
