The Financial Conduct Authority (FCA) has published new rules today (Thursday). These rules establish a simplified listings regime with a single category and streamlined eligibility for companies seeking to list their shares in the UK.

UK Listing Rules Revised

The revised listing rules aim to better align the UK’s regime with international market standards. According to the regulator, they ensure that investors will have the necessary information to make informed decisions about their money. The rules also maintain appropriate investor protections to hold company management accountable.

The new rules eliminate the requirement for votes on significant or related party transactions. They also offer flexibility around enhanced voting rights. However, shareholder approval is still needed for key events such as reverse takeovers and decisions to delist a company’s shares.

Our new rules aim to encourage more companies to publicly list in the UK, increasing opportunities for investors and supporting UK growth and competitiveness. https://t.co/ULVXSp9o1w

#UKListing #UKGrowth #Competitiveness #FinancialServices #FinancialRegulation pic.twitter.com/kfZn6VuElj

— Financial Conduct Authority (@TheFCA) July 11, 2024

The changes to listing rules follow extensive market engagement. The FCA has acknowledged the new rules involve allowing greater risk. However, the FCA believes that the changes will better reflect the risk appetite needed for economic growth. The new rules will come into effect on 29 July 2024.