CP23/31: Primary Markets Effectiveness Review: Feedback to CP23/10 and detailed proposals for listing rules reforms

Consultation opens
20/12/2023
Consultation period for LR 8 proposals closes
16/02/2024
16/02/2024
Consultation period for UKLR proposals closes
22/03/2024

These proposed listing regime reforms aim to encourage a greater range of companies to list and grow on UK markets. 

Read CP23/31 (PDF) 

Why we are consulting 

In CP23/10 in May 2023, we consulted on proposals aimed at making the UK’s listing regime more accessible, effective, and competitive.  

Having conducted a broad engagement process and received extensive feedback on our initial proposals and the wider impact our changes may have on the overall UK capital markets ecosystem, we are now setting out our detailed proposed measures.  

Our proposals to create a simpler, more disclosure-based listing regime with a single commercial company category are aimed at helping boost UK growth and competitiveness by making our regime more attractive to a wider range of companies, so they list and grow here. This should also provide greater opportunities for investors, while still keeping high standards of disclosure so shareholders retain the ability to exercise stewardship and other rights to influence company behaviour. This also involves some re-balancing of risk as part of ensuring the market overall supports the risk appetite the economy needs.  

We remain open to further views and evidence from all sides of the market on whether we have got the balance right. 

Who is this for

The following should read this document in its entirety: 

  • companies currently listed in or considering a listing in the UK 
  • existing and prospective investors in UK listed companies, including individual and institutional investors 
  • the advisory community that advises and supports issuers undertaking an initial public offering (IPO) and meeting ongoing obligations post admission to listing and trading, including existing and prospective sponsor firms, investment banks, law firms and accountancy firms 
  • UK exchanges and operators of markets for listed securities, and 
  • intermediaries who may facilitate, including providing execution and/or marketing of investments to issuers, whether at IPO or in secondary markets

The following will also be interested in this consultation, among others:

  • trade associations representing the various market participants above or member groups with thematic interests (eg, general capital markets, governance or stewardship etc), and 
  • wider financial market participants, such as research analysts and index providers, academics and other market commentators  

Next steps

Further draft rules

  • Further to the publication of CP23/31 and a first tranche of the initial draft UK Listing Rules (UKLR) sourcebook provisions contained within it, we will publish a second tranche of draft rules later in Q1 2024 as part of this consultation process.

Respond to our consultation via: 

Our proposals have different deadlines for feedback:  

  • the consultation period for LR 8 proposals regarding sponsor competence closes on 16 February 2024 
  • the consultation period for UKLR proposals regarding the replacement to the current LR sourcebook closes on 22 March 2024 

Background 

Thriving capital markets are critical to building the conditions for a strong and sustainable economy that allows innovation, growth, and investment.

That is why we are driving forward with detailed proposals for the most far-reaching reforms of the UK's listings regime in three decades, following CP23/10 in May 2023.

In our three-year strategy we committed to seizing the opportunity to further strengthen the attractiveness of UK capital markets. This consultation on the detailed rules is the next milestone as we deliver on that promise at pace. We will continue to do our part to encourage a wide and diverse range of companies to list in the UK, and for investors and markets to have greater choice and opportunity in a healthy and thriving public markets ecosystem.