FCA announces plans to reform UK listing regime

The Financial Conduct Authority (FCA) today revealed its plans to introduce reforms regarding the listing regime. According to the official announcement, the authority will make steps to make the way companies list in the UK more competitive.

Under one of the regulator’s suggestions, companies wanting to list in the United Kingdom would no longer have to choose between 2 different segments with different branding and standards.

Last year, the FCA made several steps to improve the regime. The measures included lowering free float levels, allowing certain forms of dual class share structures and introducing digital financial reporting.

FCA regulation

Clare Cole, the Director of Market Oversight at the Financial Conduct Authority, said:

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.

The announcement also stated that initial public offering (IPO) market in the United Kingdom has seen significant growth in 2021.

The FCA added:

Last year, was the best year for raising investment for listed companies since 2007. 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.

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