FS17/3 (PDF) contains an overview of the views received by the FCA in response to its discussion paper “UK Primary Markets Landscape: DP17/2 Review of the Effectiveness of Primary Markets”. However those looking for an update on the proposed new listing segment for issuers that are controlled by sovereign countries will have to wait. The FCA is still considering responses to that controversial proposal.
The FCA has identified three areas for further review. These are:
- the current split between standard and premium listing
- the provision of patient capital to science and technology companies
- retail access to debt markets.
Listing segment for international companies not progressing
The FCA has confirmed that it will not be introducing a new listing segment for international companies. Market participants did not support the different treatment of UK and international issuers which would have resulted from the introduction of this new listing segment.
The FCA intends to consider whether the requirements for a standard listing should be changed. In particular, the FCA intends to explore the scope to raise minimum requirements in the standard list where those requirements do not come from parts of EU Directives which are maximum harmonising.
No changes to the name of this listing segment are suggested.
The FCA’s work on this topic is ongoing. Unsurprisingly there is no quick fix.
Retail access to debt markets
Increased retail access to debt issued by established listed corporates seems unlikely given current regulatory requirements.