The UK’s Financial Conduct Authority (FCA) has set out a simplified listings regime to boost growth and the UK’s capital markets, and better align the UK with international market standards.
The overhaul will see a single category and streamlined eligibility for those companies seeking to list shares in the UK, and give investors the information they need while maintaining investor protections to hold companies they co-own to account. The new rules, which Chancellor Rachel Reeves said will help to “invigorate” the UK’s capital markets, will apply from 29 July 2024.
Sarah Pritchard, executive director, markets and international, FCA, said: “A thriving capital market is vital in delivering investment to growing companies plus returns and choice to investors.
“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,” Pritchard added.
The new rules 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, is still required.
©Markets Media Europe 2024
