UK simplifies IPO rules in bid to revive flagging London listings
Overview of the FCA's New Listing Rule Changes
Background: Decline in London Stock Market Listings
LONDON, Aug 5 (Reuters) - Britain's financial regulator said it was simplifying listing rules to make the country's stock market a more attractive place for companies to raise capital, seeking to reverse a prolonged slowdown in flotations.
Key Regulatory Changes Announced
The Financial Conduct Authority said on Wednesday the changes would reduce the execution risk for issuers and lower compliance costs, and included removing a seven-day waiting period for connected research during an IPO.
Challenges Facing the London Stock Market
London's stock market has been shrinking for the last decade as companies move away for higher valuations and access to deeper capital markets elsewhere, particularly the United States.
This year has also seen a high number of take-private deals, with foreign takeovers of UK names Intertek, Tate & Lyle and Segro, partly a result of British stocks becoming cheaper compared to U.S. stocks since the start of the Iran war.
FCA's Objectives and Expected Impact
The FCA said it hoped the finalisation of the new rules, on which it has been consulting since late last year, will help replenish the UK's depleted stock market.
The FCA said the changes would make it easier for companies looking to list in Britain.
Statements from Key Stakeholders
"By making the UK listing regime more efficient, we are supporting the growth and competitiveness of UK capital markets," FCA director of infrastructure and exchanges Jon Relleen said in a statement.
(Reporting by Muvija M, writing by Sarah Young; Editing by Kate Holton and William James)
