The Financial Conduct Authority (FCA) has published new rules today (Thursday). These rules establish a simplified listings regime with a single category and streamlined eligibility for companies seeking to list their shares in the UK.

UK Listing Rules Revised

The revised listing rules aim to better align the UK’s regime with international market standards. According to the regulator, they ensure that investors will have the necessary information to make informed decisions about their money. The rules also maintain investor protections to hold company management accountable.

The new rules eliminate the requirement for votes on significant or related party transactions. They also offer flexibility around enhanced voting rights. However, shareholder approval is still needed for key events such as reverse takeovers and decisions to delist a company's shares.

Sarah Pritchard, Executive Director, Markets and International, at the FCA said: “Regulation is only part of the answer in helping the UK achieve sustainable growth. Other factors also play a significant role in influencing where a company decides to list."

"We’re committed to continually working together with all those who have a part to play in supporting a thriving UK capital market and thank everyone who has contributed to this work so far.”

Boosting Economic Growth

The changes to listing rules follow extensive market engagement. The FCA has acknowledged the new rules involve allowing greater risk. However, the FCA believes that the changes will better reflect the risk appetite needed for economic growth. The new rules will come into effect on 29 July 2024.

Chancellor of the Exchequer Rachel Reeves said: “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.”