KPMG comments on FCA’s new UK listing regime proposals

Kate Dawson, sector lead of capital markets at KPMG UK’s Regulatory Insight Centre, comments on the FCA’s new UK listing regime proposals;

“The main proposal is to replace standard and premium listing share categories with a single listing one.  The FCA claims its proposals will make the listing process more straightforward with a clear purpose and cater for a more diverse range of companies.

“Many within the financial services industry welcome these proposals, as by making the process simpler and more flexible, it will increase the attractiveness of the UK as a location for company listings. This is important in the context of long-term decline in the number and value of UK listed companies. 

“However others, especially investors and shareholders, argue that the proposals will lead to a reduction in transparency and governance, such as the removal of eligibility rules requiring a three-year financial and revenue earning track record and the need for compulsory shareholder votes for certain action. This could lead to a reduction in shareholder rights and a possible decrease in investor protection.

“It is also important to note, changes in the listing rules by themselves will not automatically increase the number of companies choosing to IPO in the UK.  As the FCA acknowledges, there are many other factors that influence where a company chooses to list such as taxation and remuneration.

“There are many initiatives within UK capital markets trying to address these various factors that influence the attractiveness of the UK market, and we will start seeing the initial findings of these over the next few months. They include the Independent Research review, reviews of the corporate governance code, the work of the Capital Market Industry Taskforce, and many other initiatives by trade bodies and think tanks. The Treasury Select Committee has also been looking into the listing process."

“All reforms proposed will have to find the right balance between the attractiveness of the UK as a place to list and the potential erosion of investor safeguards.”

-ENDS-

Follow us on twitter: @kpmguk

For further information please contact:

Gerard Swinley

E: Gerard.swinley@kpmg.co.uk

M: +44 7510 375540

About KPMG UK

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.