FCA's review of UK Primary Markets: update

The FCA has published a feedback statement on DP17/21: Review of the Effectiveness of Primary Markets.

31 October 2017

FS17/3 (PDF) contains an overview of the views received by the FCA in response to its discussion paper “UK Primary Markets Landscape: DP17/2 Review of the Effectiveness of Primary Markets”. However those looking for an update on the proposed new listing segment for issuers that are controlled by sovereign countries will have to wait. The FCA is still considering responses to that controversial proposal. 

Focus areas 

The FCA has identified three areas for further review. These are:

  • the current split between standard and premium listing
  • the provision of patient capital to science and technology companies
  • retail access to debt markets.

Listing segment for international companies not progressing

The FCA has confirmed that it will not be introducing a new listing segment for international companies. Market participants did not support the different treatment of UK and international issuers which would have resulted from the introduction of this new listing segment.

Standard listing

The FCA intends to consider whether the requirements for a standard listing should be changed. In particular, the FCA intends to explore the scope to raise minimum requirements in the standard list where those requirements do not come from parts of EU Directives which are maximum harmonising.

No changes to the name of this listing segment are suggested.

Patient capital

The FCA’s work on this topic is ongoing. Unsurprisingly there is no quick fix. 

Retail access to debt markets 

Increased retail access to debt issued by established listed corporates seems unlikely given current regulatory requirements.

Further information

If you would like to discuss the feedback statement, please contact Nick Graves.

Key contact

Nick Graves

Nick Graves Partner

  • Head of Corporate
  • Corporate Advice
  • Mergers and Acquisitions
  • Reorganisations and Demergers

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