DP22/2: Primary Markets Effectiveness Review: Feedback to the discussion of the purpose of the listing regime and further discussion

Primary Markets Effectiveness Review
July 2021
Primary Market Effectiveness Review: Feedback and final changes to the Listing Rules
December 2021
Discussion opens: DP22/2
26/05/2022
26/05/2022
Deadline for comments
28/07/2022

This discussion paper continues our work reviewing how effective our primary markets are as part of the FCA’s strategy to promote competition and positive change.

Read DP22/2 (PDF) 

Well-functioning public markets enable companies to finance their businesses, which in turn create growth and jobs for the UK economy. 

Trusted public markets provide opportunities for investors in a well understood environment with high standards of disclosure and FCA oversight. More companies listing at an earlier stage in their life cycle means more opportunities for investors to share in the returns of those companies as they grow.  

Following feedback received to CP21/21, we are seeking further views on how the listing regime can be adapted to ensure the value of listing is easier to understand, to promote broader access to listing for a wider range of companies and to empower investor decision-making.   

In this discussion paper (DP) we explore a listing regime based on having a single segment for equity shares in commercial companies. We also summarise the role and purpose of the sponsor regime, and seek views on whether any improvements could be considered to make our existing rules more proportionate and effective.  

Who this applies to

This DP will be of interest to:

  • listed companies
  • companies considering a UK listing
  • existing and prospective investors in listed companies, including institutional and individual investors
  • law firms, investment banks and other advisors, including sponsors, who may assist issuers
  • exchanges or venue operators
  • intermediaries who may facilitate, including providing execution and/or marketing of, investments into listed companies, whether at initial public offering (IPO) or in secondary markets
  • trade associations representing the various market participants above
  • wider financial market participants, such as research analysts  

Respond to this discussion paper

We want to know what you think about the issues set out in this discussion paper by 28 July 2022.

Online response form
 

Next steps

We will provide feedback and consider whether to issue a consultation paper in due course or whether a further discussion paper is appropriate.