HomeBankingFCA announces “biggest changes” to the UK’s listing regime “in over three...

FCA announces “biggest changes” to the UK’s listing regime “in over three decades”

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Summary of FCA Overhauling the UK’s Listing Rules

  • Objective: To support a wider range of companies issuing shares on a UK exchange and increase investment opportunities.
  • Key Changes:
    • Introduction of a single listing category.
    • Simplified eligibility criteria for firms going public in the UK.
    • Removal of the need for votes on significant or related party transactions.
    • Flexibility around enhanced voting rights.
    • Shareholder approvals still required for key events (e.g., reverse takeovers, delisting decisions).
  • Implementation Date: New rules effective from 29 July 2024.
  • Purpose: Align UK’s share listing rules with international standards and enhance capital markets.
  • Expected Outcomes:
    • Streamlined listing process.
    • Increased attractiveness of UK markets for innovative companies.
    • Greater risk aligned with economic growth needs.
    • Preserved investor protections to hold company management accountable.
  • Context: UK accounted for only 5% of global IPOs between 2015 and 2020, with a 40% decline in the number of listed companies since 2008.
  • Statement from Chancellor Rachel Reeves: The revised rules are a significant step towards revitalizing the UK capital markets and attracting innovative companies.
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