The Financial Conduct Authority has published a policy statement on the primary markets effectiveness review. The statement summarizes the main feedback from the responses to CP23/31 on the proposed reforms and sets out the final U.K. listing rules. The final rules are broadly as consulted on in CP23/31, with certain amendments that are described in the policy statement. They aim to encourage prospective issuers to choose a U.K. listing by streamlining the rules and removing the 'premium' and 'standard' listing segments in favour of a new commercial companies' category for equity shares. The new rules also remove the need for votes on significant or related party transactions and offer flexibility around enhanced voting rights. The changes are designed to remove frictions to growth once companies are listed, while continuing to place an emphasis on disclosure so that investors can make properly informed investment decisions. The new rules will come into force on July 29, 2024, when the current Listing Rules sourcebook will cease to have effect and will be replaced by the new Listing Rules sourcebook. The rules will also appear in the FCA Handbook on that date.

The FCA has already written to all commercial companies with premium and standard listings to notify them of how their entry would be shown on the Official List under the revised regime. Issuers who currently have standard listings and will be assigned to the transition category can apply to be transferred to the new commercial companies' category under the new regime's modified transfer process.

On the same day, the FCA also published issue 50 of its Primary Market Bulletin which focuses on the final U.K. listing rules, specifically the sponsor regime, setting out in further detail how the FCA has responded to feedback received in the course of consultations on the primary market effectiveness review.

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