FCA Plans to Reform Listing Regime to Ensure Competitiveness in the UK

The British financial market supervisor, the Financial Conduct Authority (FCA), has set out an ambitious vision for potential reform to the way companies list in the UK that aims to attract more high quality, growth companies and give investors greater opportunities.

Under one of the FCA's suggestions, companies wishing to list in the UK would no longer have to choose between two different segments with different branding and standards.

Instead, all listed companies would need to meet one set of criteria and could then choose to opt into a further set of obligations. These would be focussed on enhancing shareholder engagement and be overseen by the FCA.   

Last year, the FCA moved quickly to improve the listing regime by lowering free float levels, allowing certain forms of dual class share structures and introducing digital financial reporting.  

These changes promote broader access to listing for a wider range of companies at an earlier stage in their development and help investors use data faster to improve decision-making, while maintaining high standards.

"The London market is trusted the world over by companies looking to raise capital and those wishing to invest in them,"Clare Cole, Director of Market Oversight at the FCA, said."The rules for companies who want to list here have not changed since the 1980s. Now is a good time to have an open conversation to make sure our rules are fit for the future, so we have a more accessible, competitive and growing market that is attractive to a diverse range of companies."