UK's FCA Proposes Easing IPO Research Rules, Scraps 7-Day Delay

The UK Financial Conduct Authority has launched a consultation on potential changes to its rules governing information sharing during equity initial public offerings. The review focuses on requirements introduced in 2018, assessing their practical impact.

The regulator stated the original framework aimed to boost the production of independent, pre-deal research to improve investor analysis before listings. However, feedback indicates the rules have not fully met their goals.

The FCA noted that certain equal information-sharing mandates, including a "7-day delay" for connected research, may have inadvertently increased market risk and listing costs for companies.

As part of the consultation, the FCA proposes two key amendments. First, it seeks to eliminate the 7-day waiting period between a prospectus publication and the release of connected IPO research. Second, it proposes removing rules that force syndicate banks to share identical information with external analysts as with internal teams.

The consultation also seeks views on other parts of the 2018 framework to improve information flow. It targets a broad range of stakeholders, including issuers, investors, advisers, banks, and research firms. Responses must be submitted via the FCA's online system by 29 May 2026.