To be accepted as LAD the legal entity must satisfy the DCSX of their expertise. They shall substantiate their ability to provide an adequate level of service to issuers by demonstrating that they have sufficient substance (number of employees staff with relevant experience of corporate finance and listing matters), or have access to such staff through satisfactory contractual arrangements with third parties. The LAD’s (or contracted third parties’) Executives must have suitable qualifications relating to the securities industry or a suitable allied/related profession (such as lawyer or accountant or similarly qualified person with relevant experience).
Role of a LADThe LAD is the DCSX participant who guides and advises a prospective issuer towards the listing of their security on the DCSX. From the initial financial structuring phase, the preparation of a prospectus, assistance in promotion of the issuance all thru the submission of the required documentation that has to be submitted to the DCSX, the LAD is the participant who makes sure each issue is executed and finalized in accordance with the Rules and Regulations of the DCSX. Once listed, the LAD remains the party that is responsible for proper continued communication to and with the DCSX and for submission of relevant documentation that is required yearly or otherwise once an issuer is listed.
The LAD acts as coordinator between the issuer and the exchange at all times. So any issuer that seeks to list on DCSX must have a LAD, both in the process of the listing and throughout its life as a listed entity. The LAD will be accountable for the correctness of information and ensures that an issuer fulfils its transparency requirements.
Pre Listing > The LAD will guide the issuer through the entire process of the listing and conducts due-diligence to obtain assurance that the prospectus or the offering circular provides a true and fair view of the company and that it has been prepared in compliance with the legal requirements and DCSX rules. Post Listing > Once the company is listed, the LAD must help the listed company to fulfill its obligations to the DCSX and the investors. The LAD will inform the DCSX immediately of any discrepancy in the flow of information or when the issuer fails to meet any of its obligations.
For the issuers the LAD plays a key part in the preparation of the public offer or private placement and helps the listed company to fulfill its ongoing obligation to disclose information.
On the other side, for investors, the LAD plays an indirect defining role as it ensures that the listed company will fulfill its obligation to inform the public of market relevant data.