FCA unveils listings regime proposals to simplify market access for companies

investmentweek.co.uk:

'We are working to strengthen the attractiveness of UK capital markets and supporting UK competitiveness and growth.'

Following a consultation on the move in May, the regulator has decided to keep the simplified regime by retaining a single listings category to streamline eligibility and ongoing requirements.

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This should encourage a «greater range of companies to list in the UK and compete on the global stage», it argued.

The regulator has also retained a disclosure-based approach in the proposals, to put «sufficient information in the hands of investors», a measure which the FCA said would move from the current mandatory voting system to a framework that would require disclosures for significant transactions, while maintaining sponsor scrutiny of related-party transactions.

However, shareholders would still be required to approve key events, including reverse takeovers and de-listings, it explained.

The regulator acknowledged the proposals could «entail an increased possibility of failures, but the changes set out would better reflect the risk appetite the economy needs to achieve growth».

The FCA included a regulatory regime for a bond market consolidated tape in the proposals, in a bid to deliver «a key element of the Edinburgh Reforms».

This will provide investors with quicker and cheaper data on trade and sales, the regulator explained. The next steps for shares will be revealed in 2024.

For derivatives, the FCA said the proposals outline measures to «significantly increase the information that is published in real time», which will improve the bonds and derivatives markets' ability to «establish a fair price, and help investors buy or sell».

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