Listing regime reform: FCA outlines approach

Following discussion paper DP 22/2 (see our briefing here). The Financial Conduct Authority has set out some headline details of its proposed reforms to the listing regime. Major changes will include:

• No more premium and standard listing segments for shares in commercial companies: there will be one listing category with one rule book. 
• No need for a three-year financial track record before listing (to make listing more accessible for start-ups).
• Greater flexibility on use of dual share classes.
• No need for shareholder approval for class 1 or large related party transactions: only disclosure requirements. 
• A uniform set of listing principles.
• A “streamlined sponsor regime”.

The reforms were confirmed in a speech by Nikhil Rathi (Chief Executive of the FCA) available here.

The FCA will publish a blueprint for further reform of the listing regime “soon”.