The Financial Conduct Authority in the UK has introduced changes to the rules governing initial public offerings (IPOs), removing some requirements to make UK share listings easier to carry out.
The regulator said the revisions are intended to make the UK market more competitive internationally.
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It said the measures would cut execution risk for issuers, reduce compliance expenses and simplify access to public markets.
Among the changes, the FCA will scrap the seven-day delay for connected research during an IPO and streamline rules on how information is shared between issuers and firms.
The policy statement applies to prospective issuers, retail and institutional investors in shares admitted to a UK regulated market, investment advisers, brokers and other intermediaries, independent research providers, investment banks and other firms involved in IPOs.
It also covers law firms and sponsors working on such transactions.
Companies and firms may still involve unconnected analysts during the IPO process, but this will no longer be mandated by FCA rules.
Any such arrangements are to be made on a commercial basis.
The FCA has also removed the framework covering unconnected analysts.
This ends rules that had barred communication between connected analysts and issuers unless syndicate banks identified a range of unconnected analysts.
It also removes the requirement for substantially the same information to be given to unconnected analysts as to connected analysts.
Under the revised system, issuers and unconnected analysts can engage directly.
Access to information will be decided commercially, and unconnected analysts may still ask for information and join analyst briefings without a compulsory framework.
FCA infrastructure and exchanges director Jon Relleen said: “We want the UK market to be an attractive place for companies to raise capital and grow. By making the UK listing regime more efficient, we are supporting the growth and competitiveness of UK capital markets.”
