The FCA has simplified UK IPO listing rules, aiming to reduce execution risk and reinforce the competitiveness of UK capital markets.
The regulator said the reforms are designed to reduce execution risk for issuers, lower compliance costs, and simplify processes associated with listing on UK exchanges, with the broader aim of allowing the UK listings market to compete more effectively with other global exchanges.
Under the revised rules, the FCA will remove the seven-day waiting period that previously applied to connected research during an IPO process. Connected research refers to analysis published by banks or brokers involved in underwriting an IPO regarding the company they are advising. In addition, the seven-day rule had required issuers to wait before connected analysts could publish research following an IPO announcement, a requirement the FCA identified as adding time and complexity to the listing process.
Alongside this change, the FCA is simplifying information-sharing requirements between issuers and the firms involved in a listing, an area the regulator identified as contributing administrative burden to the IPO process.
The reforms form part of the FCA's wider agenda to support growth, investment, and innovation in UK capital markets, while the regulator has said it remains committed to upholding market integrity and investor protection standards.
Jon Relleen, director of infrastructure and exchanges at the FCA, said the regulator wants the UK market to be an attractive venue for companies to raise capital and grow, noting that a more efficient listing regime supports the growth and competitiveness of UK capital markets.
Implications for issuers and the UK listings market
The changes are expected to reduce the time and cost associated with bringing a company to public markets in the UK, which may affect how issuers and their advisers plan IPO timetables. Removing the waiting period for connected research could also alter how sell-side research is coordinated around IPO announcements, since analysts tied to underwriting banks will no longer be constrained by a fixed delay before publishing.
The reforms follow continued scrutiny of the UK listings market's ability to attract and retain companies choosing to go public, amid competition from other exchanges internationally. They form part of an ongoing review of the UK's listing regime, addressing structural aspects of the IPO process that the FCA has identified as adding friction for companies and their advisers.
