Review of the effectiveness of UK primary markets - Law Society response
In February the Financial Conduct Authority (FCA) published a discussion paper based on feedback the FCA received from stakeholders as part of its review of the effectiveness of primary markets.
The main purpose of primary markets is to provide issuers with access to capital and investors with investment opportunities.
The Law Society and the City of London Law Society produced a joint response. Our response includes:
- recommending the FCA re-examines the listing rules which require at least 25 per cent of a company's shares to be in public hands (the free float requirement) in order for the shares to be on the UK premium listing
- recommending that, instead of creating a distinct international segment, the FCA should revisit the premium listing requirements to see whether they are too onerous for overseas issuers
- agreeing that the premium listing obligations for open-ended investment companies should be removed as they impose an extra layer of regulation which is on top of the existing regulations outside the Listing Rules (such as the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive)
- stating that the premium listing rules should not apply to open-ended investment companies as the rules are not specifically designed for such companies.