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UK Regulator Eyes IPO Research Rule Changes
27 Apr
Summary
- The FCA is consulting on removing a seven-day research delay for IPOs.
- This aims to increase London's appeal as a global listing venue.
- Current rules, designed to promote independent research, are considered complex.
The Financial Conduct Authority (FCA) in the UK has initiated a public consultation regarding potential changes to rules governing research publication during Initial Public Offerings (IPOs). This move is part of a broader strategy to enhance London's attractiveness as a global financial center for listings.
The proposed changes include the removal of a mandatory seven-day waiting period before banks can publish research related to an IPO. Additionally, the FCA is considering eliminating requirements for firms to share information equally with independent analysts and their own research teams.
Introduced in 2018, the existing regulations were intended to foster independent research on new listings. However, the FCA now states that these rules have introduced unnecessary complexity and risk, without yielding the anticipated benefits. The regulator aims to reduce friction and support growth within the UK's capital markets.
This consultation follows a commitment made by the FCA in December of the previous year to review these research rules. The public consultation period is set to conclude on May 29.
