The UK’s Financial Conduct Authority (FCA) has proposed revamping its listing rules to make them simpler and more competitive, in a bid to attract more companies to list shares in the country. The FCA believes that its proposed reforms would make the rules “more effective, easier to understand, and more competitive”, and could make the UK more attractive for companies looking to list.
Facts
- The FCA has proposed revamping the UK’s listing rules to make them simpler and more competitive.
- The revamped rules would be “more effective, easier to understand, and more competitive”.
- FCA CEO Nikhil Rathi says the reforms would “rebalance the burden of regulation” to benefit both companies and investors.
- The new rules would promote transparency and disclosure, improving the attractiveness of listing in the UK and providing more investment opportunities.
- Proposed reforms include scrapping the two-tier system of “standard” and “premium” and replacing them with a single category.
- Listings in the UK have fallen 40% since 2008, and the UK accounted for only 5% of global IPOs between 2015 and 2020.
- Rule changes to improve equity secondary markets are also in the pipeline as part of the Wholesale Markets Review.
