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Updated Briefing on Proposed Reforms to The UK Listing Regime: Opportunities for Sponsors

In late December 2023, the FCA published a new consultation paper on its proposals for listing rule reform, including draft Listing Rules to implement the new regime.

The primary objectives of the reforms are to (i) attract more companies to list and raise capital in the UK and (ii) support market integrity through disclosure rather than regulation.

All aspects of the FCA consultation will run until March 2024 and the new rules are expected to enter force in the second half of 2024.

The reforms mean that:

  • Exit by way of IPO should become more straightforward and appealing for a broader range of companies.

  • Significant and related party transactions will also be easier for listed companies to undertake.

Many of the proposals are consistent with the FCA’s May 2023 consultation paper (read our original briefing here), including the single listing segment for equity shares in commercial companies and the removal of the various historical financial information requirements for listing.

The consultation paper does not deal with indexation but it is expected that FTSE Russell will consult its members shortly on changes to the FTSE UK eligibility criteria in response to the FCA’s proposals.

The table below sets out details of the proposed reforms including (i) those that have not changed since May 2023, and (ii) those that have (shaded in green) – in each case by reference to the current premium listing requirements.

Simplified Eligibility Requirements for IPOs