FCA Announces Changes To UK Listing Rules To Boost Growth And Innovation

0
FCA Announces Changes To UK Listing Rules To Boost Growth And Innovation
PIX1861 / Pixabay

More details about FCA’s changes to UK listing rules can be found here.

The FCA has confirmed the following changes:

Get The Full Walter Schloss Series in PDF

Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q3 2021 hedge fund letters, conferences and more

After A Tough Year, Odey Asset Management Finishes 2021 On A High

For much of the past decade, Crispin Odey has been waiting for inflation to rear its ugly head. The fund manager has been positioned to take advantage of rising prices in his flagship hedge fund, the Odey European Fund, and has been trying to warn his investors about the risks of inflation through his annual Read More

  • Allowing a targeted form of dual class share structures within the premium listing segment to encourage innovative, often founder-led companies onto public markets sooner and so broaden the listed investment landscape for investors in the UK.
  • Reducing the amount of shares an issuer is required to have in public hands (i.e. free float) from 25% to 10%, reducing potential barriers for issuers created by current requirements.
  • Increasing the minimum market capitalisation (MMC) threshold for both the premium and standard listing segments for shares in ordinary commercial companies from £700,000 to £30 million. Raising the MMC will give investors greater trust and clarity about the types of company with shares admitted to different markets.

Anne Fairweather, Head of Government Affairs & Public Policy at Hargreaves Lansdown:

“Rule tweaks will encourage more companies to list in the UK providing welcome opportunities for investors. The Government must now look to address wrinkles in the way reams of information must be disclosed through the use of old fashioned prospectuses, which currently limit the attraction of offering new capital raisings to ordinary investors. Retail investors must have the opportunity to invest at IPOs and greater protections with secondary fund raises. A flurry of smaller companies joining the market will provide potential for some exciting growth in newly emerging technologies and industries, however this potential will go hand in hand with increased risk. As always, investors must weigh the opportunities on offer against the risks, we’d expect individual smaller companies to make up fairly small parts of a client’s overall portfolio.”


About Hargreaves Lansdown

Over 1.67 million clients trust us with £138.0 billion (as at 30 September 2021), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Updated on

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
Previous article 3 Ways to Continue Adjusting Your Communication Going Into 2022
Next article ESG Not A Priority For Majority Of UK Investors, Despite COP26 Efforts  

No posts to display