On February 14, 2017, the FCA launched its review into the effectiveness of primary markets by publishing a discussion paper on the UK primary markets landscape. The FCA is seeking views on how the UK primary capital markets can meet the needs of investors and operate effectively. It includes an overview of the UK's primary markets, how the listing regime fits in, the FCA's regulatory role and key trends in the UK's primary equity markets.
The issues which are raised in the discussion paper include, among other matters, whether: (i) the boundary of the premium listing regime is appropriately drawn and whether re-drawing the boundary would improve effectiveness for issuers and investors; (ii) the listing regime for overseas issuers should be reconsidered; (iii) requiring premium listing for exchange traded funds issuers is unnecessarily burdensome; (iv) standard listing is sufficiently understood or valued by issuers and investors to be effective; (v) the UK primary markets are effective in providing patient capital and whether there are different market structures which might provide a solution; (vi) there is a role for a UK primary debt multilateral trading facility and how it should be structured; and (vii) there are regulatory measures that could be taken to encourage greater retail participation in debt markets.
The FCA's consultation paper on enhancements to the listing regime should be read in conjunction with the discussion paper. Responses to the issues raised in the discussion paper are requested by May 14, 2017. If the FCA considers that policy proposals are warranted by the feedback it receives, it will publish a further consultation paper.
The discussion paper is available at: https://www.fca.org.uk/publication/discussion/dp17-02.pdf and the consultation paper is available at: https://www.fca.org.uk/publication/consultation/cp17-04.pdf .
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