The Financial Conduct Authority (FCA) has announced a series of regulatory changes aimed at revitalizing London's stock market and stemming a decline in listed companies. Central to the reforms is the removal of the current seven-day waiting period for connected research during initial public offerings (IPOs), a rule the FCA attributes to increased costs and complexity for firms.
The watchdog also plans to streamline rules governing how firms share information throughout the flotation process. Officials say these changes are designed to reduce operational risks and lower expenses for companies seeking to list on British exchanges. The FCA emphasized that the reforms are intended to strengthen London’s competitiveness against major global markets, particularly New York.
The announcement comes amid growing concern over London's diminishing role as a hub for equity listings. Over the past decade, the city has lost approximately one-third of its listed companies. A number of major firms—including Ferguson, CRH, and Flutter Entertainment—have recently withdrawn secondary listings from London, opting to focus their stock market presence elsewhere.
Market participants have long cited regulatory burdens, high costs, and administrative hurdles as factors driving companies away. The FCA’s reforms reflect an effort to address these challenges and encourage companies to maintain or establish listings in London.
Industry analysts noted that while the changes could improve market access and reduce procedural barriers, the impact on reversing the trend of delistings remains to be seen. Some observers argue that broader structural issues, such as global competition and investor preferences, also play significant roles in listing decisions.
The FCA indicated it will monitor the effects of the reforms closely and is open to further adjustments to support the London stock market’s growth and resilience. The regulatory body said its goal is to ensure the City remains an attractive destination for equity capital raising amid an increasingly competitive international environment.