The Financial Conduct Authority (FCA) has introduced reforms to its 2018 rules concerning Initial Public Offerings (IPOs), which took immediate effect in August. These changes follow a consultation launched in April, where there was near-unanimous agreement on the need for reform.
The new measures eliminate the seven-day connected research waiting period, a rule that had lengthened the IPO timetable in the UK. This removal is intended to reduce the window of execution risk for companies during volatile market conditions. Additionally, the FCA has removed equal information-sharing requirements for syndicate banks, a measure previously identified as adding compliance costs and administrative burden without tangible benefit.
These reforms are seen as a step towards making London more competitive in the global listings race, particularly against European venues that can price deals more quickly. However, further action is considered necessary to address structural factors that drive companies to list elsewhere, such as deeper pools of capital and higher valuations.