Welcome to the UK’s new listing regime

The Financial Conduct Authority (FCA) has today published in draft most of the new UK Listing Rules, to implement a radical restructuring of the UK listing regime (CP 23/31). While the genesis of the rule changes is the desire to attract more companies to list in London, they will of course have a significant impact on existing listed companies.

The FCA is implementing a new single segment, the new "equity shares (commercial companies)" category, to replace the current premium and standard segments, with just one set of continuing obligations for normal commercial companies. Proceeding with most of its trailed proposals from May this year, as part of the new UK listing regime:

• shareholder votes will no longer be required for significant/Class 1 transactions;
• shareholder votes will no longer be required for related party transactions;
• a modified sponsor regime will remain a cornerstone of investor and market protection;
• relationship agreements will remain mandatory with controlling shareholders; and
• there will be significant changes to the eligibility requirements for new prospective IPO candidates, moving to a disclosure-based rather than rules-based regime.

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