Further issuances of equity on regulated markets – Engagement Paper 2

Engagement Paper published
Closing date for responses
Engagement feedback published

We are asking for your feedback on our initial thinking about requirements for further issuances of equity securities under the new public offers and admissions to trading regime.

Read Engagement Paper 2

Why we are publishing this paper

The Government is in the process of creating a new legislative framework that will give powers to the FCA to set rules for what disclosures companies need to provide when seeking to admit securities to a regulated market. In advance of this, we are seeking views on how we might make such rules.

The new regime will give us the opportunity to tailor our approach to further issuances more directly to the needs of issuers and investors.

We will have discretion on whether or not to require a prospectus and to interpret what ‘necessary information’ needs to be contained in the document.

Our starting assumption is that we should look to substantially reduce requirements for a prospectus for further issuances in the current regime.

In this paper we ask for your views on this approach, how we may set a threshold for requiring a prospectus and what document should be required if we do not require a prospectus. We also consider separately, requirements for further issuances for funds.

This paper is linked to Engagement Paper 1 on admission to trading on a regulated market. These papers are part of a series setting out our emerging policy thinking on how we may use our rule-making powers under the new regime.

Who is this of interest to

  • Companies with securities admitted to UK regulated markets.
  • Companies considering seeking admission of their securities to a UK regulated market.
  • Existing and prospective investors in companies on UK regulated markets including institutional and individual investors.
  • Law firms, investment banks and other advisers, including sponsors who may assist issuers.
  • Exchanges or venue operators.
  • Intermediaries who may facilitate, including providing execution and/or marketing of investments into companies on UK regulated markets, whether at initial public offering (IPO) or in secondary markets.
  • Trade associations representing the various market participants above.
  • Accountancy firms and those providing support to issuers in preparing annual financial reports.
  • Wider financial market participants such as research analysts.

Publication of our summary of engagement feedback - 12 December 2023

The period for submitting feedback to this Engagement Paper has closed.

We have now published a summary of the feedback we received to the 6 Engagement Papers we published.

If you would like to discuss anything further about our engagement process, please email [email protected] which we will continue to monitor.

Next steps 

We are now considering the points raised and are developing our consultation proposals with a view to publishing a consultation paper in summer 2024.

Page updates

: Information added Publication of engagement feedback
: Link added Links to Engagement Papers 5 and 6