FCA overhauls listing rules to boost stock market growth

Written by Michael Griffiths

11/07/2024

The Financial Conduct Authority is overhauling its listing rules in an effort to boost growth in the UK stock markets.

The new rules are the “biggest changes to the listing regime in over three decades”, the regulator has stated.

Published today, the FCA has set out a simplified listings regime with a single category and streamlined eligibility for companies seeking to list their shares in the UK. The rules aim to support a wider range of companies to issue their shares on a UK exchange, increasing opportunities for investors.

The new rules, which will come into effect from 29 July, also remove the need for votes on significant or related party transactions and offer flexibility around enhanced voting rights. Shareholder approval for key events, like reverse takeovers and decisions to take the company’s shares off an exchange, will still be required.

“A thriving capital market is vital in delivering investment to growing companies plus returns and choice to investors,” said executive director, markets and international at the FCA, Sarah Pritchard. “That’s why we are acting to make it more straightforward for those seeking to list in the UK, while retaining vital protections so investors can help steer the businesses they co-own.

“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.”

The Chancellor, Rachel Reeves, added: “The financial services sector is central to the UK economy, and at the heart of this government’s growth mission.

“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.”

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