Sarah Pritchard, Executive Director of Markets and International at the Financial Conduct Authority (FCA), delivered a speech at the Capital Markets Industry Taskforce conference on September 6, 2024, outlining the FCA's ambitious reforms to strengthen the UK's position in global wholesale markets.

Key Features of the New Rules:

• Continued Reforms: The FCA is committed to implementing a comprehensive package of reforms to enhance the UK's capital markets.
• Recent Achievements: The successful introduction of new listing rules on July 29, 2024, marks a significant milestone in these reforms.
• Focus on Growth and Competitiveness: The FCA's primary objective is to support the long-term economic growth and competitiveness of the UK capital markets.
• Collaboration and Engagement: The FCA emphasizes the importance of collaboration between regulators, industry participants, and investors to achieve these goals.

Streamlining the Process for IPOs: 

• Simplifying the Regime: The new listing rules aim to create a more streamlined and accessible environment for companies seeking to list on UK exchanges.
• Disclosure-Based Approach: The FCA is shifting towards a disclosure-based regime, empowering investors to make informed decisions.
• Flexibility and Adaptability: The new rules provide greater flexibility for companies, allowing them to innovate and grow without excessive burdens.
• Maintaining High Standards: Despite the simplified regime, the FCA remains committed to ensuring high standards of corporate governance and disclosure.

Beyond Listing Rules:

• Public Offers and Admissions to Trading: The FCA is also proposing reforms to make it easier and cheaper for companies to raise capital in the UK.
• Investment Research: The FCA has introduced new rules to give asset managers more flexibility in how they pay for investment research.
• Digital Securities Sandbox: The FCA is actively exploring the potential of digital securities and has established a sandbox to facilitate innovation in this area.
• Value for Money Framework: The FCA is working to improve transparency and accountability in the pension industry, ensuring that investors receive fair value for their investments.

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The FCA's reforms represent a significant step forward in strengthening the UK's capital markets. By creating a more attractive and competitive environment for issuers and investors, the FCA aims to contribute to the long-term economic growth and prosperity of the UK.

Click here to learn more about The FCA’s new listing rules and what's to come

MEMA can provide essential support to firms navigating these regulatory changes. Our team of experts offers guidance on regulatory interpretation, compliance assessments, risk management, policy development, staff training, and documentation. By working with MEMA, you can ensure your business remains compliant, mitigates risks, and positions itself for long-term success.

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