Howard Kennedy LLP’s Post

In the latest step in the reform of the UK prospectus regime, the FCA has now published a consultation on its rules in this area – read our key takeaways for equity issuers below.

The UK Financial Conduct Authority (FCA) has published the final form of its new UK Listing Rules. The new rules come into force on 29 July 2024. The final rules follow the draft rules on which it consulted earlier in 2024, but with some key changes in the detail, as a result of market feedback. Read more in the new client alert from Delphine Currie, James Wilkinson and Edmund Tyler below: #CapitalMarkets #Investment #Business #Finance #UK

The FCA's New UK Listing Rules: Key Changes and Implications for Equity Capital Markets * The UK Financial Conduct Authority (FCA) has introduced new UK Listing Rules, effective from 29 July 2024, aimed at creating a more accommodating regulatory environment for a wider range of companies seeking a listing in the UK, particularly high-growth companies. * The new rules merge the current premium and standard listing categories into a single category for equity shares of commercial companies admitted to the Official List, simplifying admission criteria and ongoing obligations. * Key changes include a reduction in admission eligibility criteria, such as the removal of the requirement for a three-year financial and revenue-earning track record, potentially enabling earlier listings for high-growth companies. * The new rules introduce more flexibility in dual/multiple class share structures, allowing individual founding investors, employees, and directors to hold enhanced voting rights at the time of IPO. Pre-IPO institutional or corporate investors can now hold the enhanced voting rights for a maximum of 10 years. * The FCA aims to strike a balance between accommodating innovation and growth while ensuring appropriate investor protection, with specific safeguards for certain Listing Rules matters. https://lnkd.in/gKNX9X5U

Financial Conduct Authority Overhauls Listing Rules to Boost Growth and Innovation on UK Stock Markets   Sarah Pritchard, Executive Director, Markets and International, at the FCA said: “A thriving capital market is vital in delivering investment to growing companies plus returns and choice to investors. That’s why we are acting to make it more straightforward for those seeking to list in the UK, while retaining vital protections so investors can help steer the businesses they co-own. “Regulation is only part of the answer in helping the UK achieve sustainable growth. Other factors also play a significant role in influencing where a company decides to list. We’re committed to continually working together with all those who have a part to play in supporting a thriving UK capital market and thank everyone who has contributed to this work so far.”   https://lnkd.in/d8aSS6_e Rt Hon Rachel Reeves #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews