The Panel derives a large part of its income from a charge on certain trades in the securities of companies whose shareholders benefit from the protections afforded by the Code (the “PTM Levy”).
The PTM Levy is payable on trades 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 current levy rate is:
- 100p per contract where the total consideration of the relevant trade is greater than £10,000 (or the equivalent in any other currency).
The PTM Levy is payable on 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:
- covered warrants;
- debentures and other debt securities;
- preference shares;
- Permanent Interest Bearing Securities;
- contracts for differences and total return swaps;
- spread bets; or
- option contracts;
unless they are securities which are convertible into, or which will give the holder the right to subscribe for, equity share capital. However, the exercise of an option contract would be a trade on which the PTM Levy is payable.
The PTM Levy is not payable on trades in securities of open-ended investment companies, including exchange traded funds.
The PTM Levy is payable on both purchases and sales. It is payable by the purchaser or seller of the securities and is collected by the intermediary that undertakes the trade where the intermediary is a member of a UK regulated market or a UK multilateral trading facility that requires its members to collect the PTM Levy. The PTM Levy is not payable on trades between members of UK regulated markets or UK multilateral trading facilities when they trade as principals between themselves.
Where more than one security is included in the same trade, the PTM Levy is charged as if there has been a separate trade in each security.
Where orders from different clients are combined into one trade, the PTM Levy is charged as if there has been a separate trade for each client.
The PTM Levy is not payable on placings of new securities or on securities borrowing or lending transactions. The PTM Levy is payable on “when issued” trading.