Rules and requirements serve an important purpose, which is to sustain confidence in the financial market, enable a common framework for companies and protect the market participants. The legal requirements for the main market are more thorough than on First North, which is one of the reasons for its simplicity.

Companies on First North are usually young, developing companies, sometimes without several years’ track record. The lighter legal requirements on First North give companies an opportunity they wouldn’t otherwise have, to go public and be admitted to trading on a liquid and transparent marketplace. First North in Sweden is regulated by the Rulebook. The legal rules for stock market companies, including IFRS and disclosure requirements, are not applicable to companies on First North.
 

The regulations for companies on First North can be divided into two parts: admission requirements and disclosure rules. The admission requirements for companies joining First North specify what must be fulfilled in order to be eligible for trading on First North. These requirements contain, for example, requirements regarding the company’s share, the preparation of a Company Description prior to trading and the appointment of a Certified Adviser. Disclosure rules, on the other hand, regulate the procedures regarding when and how companies disclose information to the market once the company has been admitted to trading on First North. All information that is likely to materially influence the valuation of a company must be published in a way that ensures that it reaches all market participants simultaneously. Fundamental to disclosure is that company information is correct, relevant and reliable. Disclosure rules are enforced to ensure a high standard of the information released from the companies admitted to trading on First North.
 

The overall admission requirements are the following:

* Conditions for a sufficient supply and demand:
    - Sufficient number of shareholders; and
    - at least 10% of the share capital in public hands; or
    - acquire the services of a Liquidity Provider.
* Publication of a Company Description/Prospectus.
* The company must at all times have an agreement with a Certified Adviser
* The company must accept and sign the general terms and conditions for admission to trading on First North.
* The Company must possess the organization and staff required in order to comply with the requirements regarding         disclosure of information to the market

For additional information regarding specific admission requirements, disclosure rules and the rules of First North see the First North Rule Book.