Thera Prins
UK Shareholder Services
A rather short bulletin this month but one which highlights a significant change in the UK Listing Rules following the announcement made by the Financial Conduct Authority of new Listing Rules which will come into effect on 29 July.
The Financial Conduct Authority (FCA) have published new Listing Rules which will come into effect on 29 July 2024. The new rules are a significant overhaul of the UK’s Listing regime. The distinction between the Premium segment and Standard segment will be dispensed with and instead there will be a single Equity Shares in Commercial Companies (ESCC) category. The new rules remove the need for votes on significant or related party transactions and offer flexibility around enhanced voting rights. However, shareholder approval for key events, like reverse takeovers and decisions to take the company’s shares off an exchange, is still required.
The new listing rules will continue to operate within broader regulatory checks and balances that maintain high, internationally regarded market standards. These include the market abuse regulation, disclosure and transparency, financial reporting, and prospectus rules. Company law and corporate governance standards also provide a wider framework that will continue to support good governance and conduct by issuers, and shareholder engagement. A review of the new rules will be conducted in 2029 to assess the impacts on all parts of the market. However, the FCA have emphasised that they will not hesitate to intervene earlier and use their supervisory powers if necessary to ensure market integrity or their other statutory objectives.
Full details of the changes are available at PS24/6: Primary Markets Effectiveness Review: Feedback to CP23/31 and final UK Listing Rules (fca.org.uk)
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FCA Approves Major Overhaul To UK Listing Regime To Enhance Market Competitiveness
Steve Banfield - Industry Director at EQ - analyses the changes in the UK Listing Rules. He observes that the changes, in conjunction with such developments as the Investment Research Review, Accelerated Settlement and further Digitalisation of the financial services industry, are intended to help to make the UK an attractive place for business to grow, list and stay.
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