FCA Confirms New Listing Rules to Facilitate Growth and Innovation on UK Stock Markets

The UK Financial Conduct Authority (FCA) has confirmed on Thursday a series of rule changes, effective on 3 December 2021, to ensure that the UK's public markets remain a trusted and attractive place to list successful companies, and to providing opportunities for companies to grow from which investors will benefit. 

According to the announcement, the reforms address, and build on, a number of the recommendations made in the UK Listing Review and the Kalifa Review of UK FinTech, with the FCA seizing the opportunity to update its rules to respond to the changing nature of companies looking to list while maintaining high standards for UK public markets.

The confirmed changes include:

• Allowing a targeted form of dual class share structures within the premium listing segment to encourage innovative, often founder-led companies onto public markets sooner and so broaden the listed investment landscape for investors in the UK.

• Reducing the amount of shares an issuer is required to have in public hands (i.e. free float) from 25% to 10%, reducing potential barriers for issuers created by current requirements.

• ​Increasing the minimum market capitalisation (MMC) threshold for both the premium and standard listing segments for shares in ordinary commercial companies from £700,000 to £30 million. Raising the MMC will give investors greater trust and clarity about the types of company with shares admitted to different markets.