Financial Conduct Authority Plans Reform of Listing Regime

The Financial Conduct Authority (FCA) announced today that it is planning to introduce some reforms regarding the listing regime. According to the details shared by the FCA, the steps from the authority will make the listing regime convenient and competitive.

Under one of the suggestions from the Financial Conduct Authority, companies planning to list in the United Kingdom would no longer have to select between 2 different segments with different branding and standards.

Last year, the authority introduced several measures to improve the listing regime. The steps taken by the FCA in 2021 to enhance the listing regime included lowering free float levels, allowing certain forms of dual-class share structures, and introducing digital financial reporting.

“The London market is trusted the world over by companies looking to raise capital and those wishing to invest in them. That trust is created by strong standards and a world-leading concentration of buyers, sellers and the advisers who support them. The rules for companies who want to list here have not changed since the 1980s. Now is a good time to have an open conversation to make sure our rules are fit for the future, so we have a more accessible, competitive and growing market that is attractive to a diverse range of companies,” Clare Cole, the Director of Market Oversight at the Financial Conduct Authority, said.

UK's IPO Market

The initial public offering (IPO) market in the United Kingdom saw record growth in 2021. According to the FCA, companies in the region raised £16.9 billion in 2021 through IPOs, which is the highest level in almost 15 years.

“In all, £16.9 billion was raised in UK Initial Public Offerings (IPOs) including 126 companies listing on the London Stock Exchange. The FCA is aiming to build on this success,” the authority added in the announcement.