FCA Proposes Removing IPO Research Restrictions to Boost London Listings
By Charlie Conchie
FCA Consultation on IPO Research Rules
LONDON, April 27 (Reuters) - Britain's financial regulator has launched a consultation on plans to scrap rules governing the publication of research during initial public offerings (IPOs) in its latest bid to boost the appeal of London as a listing venue.
Proposed Changes to Research Publication
The Financial Conduct Authority said on Monday it is seeking views on changes that will remove a requirement for a seven‑day delay before research can be published by banks working on an IPO, as well as rules that require firms to provide independent analysts with the same information as their own research analysts.
Background to Current Rules
While the current rules, introduced in 2018, were designed to encourage the publication of independent research on new IPOs, the FCA said they had introduced complexity and risk to the listing process and failed to deliver the intended benefits.
FCA’s Commitment to Market Competitiveness
"We are committed to reducing friction, supporting growth, and ensuring the UK remains a competitive and trusted place for companies to raise capital," said Jon Relleen, director of infrastructure & exchanges, supervision, policy & competition division.
Next Steps in the Consultation Process
The consultation comes after the regulator committed to changing the research rules in a letter to the prime minister in December last year. It will run until May 29.
(Reporting by Charlie Conchie, Editing by Louise Heavens)
