The UK Financial Conduct Authority (FCA) on Thursday announced an overhaul of listing rules for companies — changes the regulator called the biggest to the listing regime in over 30 years.
The new rules are intended to simplify the listing regime with a single category and to streamline eligibility for companies seeking to issue shares on a UK exchange, a news release said.
The changes, informed by “extensive engagement across the market”, come into force this month. Another goal of the overhaul is to align the UK’s regime with international market standards and to deliver investment to growing companies.
“The FCA has been clear that the new rules involve allowing greater risk but believes the changes set out will better reflect the risk appetite the economy needs to achieve growth,” the release said.
The FCA also said that the overhaul will ensure that investors have more information and will “remove the need for votes on significant or related-party transactions, and offer flexibility around enhanced voting rights”.
According to an FCA publication, the final rules will affect:
- Companies currently listed in or considering a listing in the UK.
- Existing and prospective investors in UK-listed companies, including individual and institutional investors.
- The advisory community that advises and supports issuers undertaking an initial public offering (IPO) and meeting ongoing obligations post-admission to listing and trading, including existing and prospective sponsor firms, investment banks, law firms, and accountancy firms.
- UK exchanges and operators of markets for listed securities.
- Intermediaries who may facilitate, including providing execution and/or marketing of investments to issuers, whether at IPO or in secondary markets.
UK Chancellor of the Exchequer Rachel Reeves said the financial services sector is central to the UK economy and is at the heart of this government’s growth mission.
“These new rules represent a significant first step towards reinvigorating our capital markets, bringing the UK in line with international counterparts, and ensuring we attract the most innovative companies to list here,” Reeves said in the release.
The new rules will apply from 29 July.
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