A reminder of the continuing reforms to implement suggestions from the Lord Hill and Kalifa Opinions.
By James Inness, Anna Ngo, and Johannes Poon
The result of the UK Secondary Capital Elevating Assessment, launched on 12 October 2021 to enhance additional capital elevating processes for UK publicly traded corporations, was printed by HM Treasury on 19 July 2022. (For additional particulars, please see this Latham weblog put up).
Beneath is a recap on the opposite key developments on reforming the UK capital markets following the Lord Hill and Kalifa Opinions.
| Prospectus Regime Reform | On 1 March 2022, HM Treasury introduced its proposals (following session) to create a extra dynamic and versatile UK prospectus regime with the FCA to play a central position by means of enhanced rule-making powers. The Monetary Providers and Markets Invoice that was launched to Parliament on 20 July 2022 consists of provisions to revoke retained EU legislation regarding the prevailing prospectus regime which might allow the implementation of the proposed reforms.
For additional particulars, please see this Latham weblog put up. |
| Itemizing Regime Reform | On 26 Could 2022, the FCA printed a dialogue paper searching for additional views on tips on how to enhance the UK itemizing regime. The important thing proposal is to unify the premium and commonplace itemizing segments right into a single phase (incorporating most of the necessities underneath the present premium itemizing phase). The deadline for responses was 28 July 2022. Additional consultations and discussions will seemingly comply with earlier than the brand new regime is settled.
For additional particulars, please see this Latham weblog put up. |
| Elimination of Sure Itemizing Obstacles | On 2 December 2021, the FCA confirmed key adjustments to its itemizing guidelines that took impact from 3 December 2021:
· Premium-listed issuers might undertake a focused and time-limited type of twin class share construction. · Minimal free float requirement is lowered from 25% to 10%. · Minimal market capitalisation requirement on IPO is raised to £30 million (from £700,000). For additional particulars, please see this Latham weblog put up. |
| SPAC Reform | From 10 August 2021, UK-listed particular function acquisition autos (SPACs) that meet sure standards would now not be topic to the presumed buying and selling suspension of their shares upon announcement of a de-SPAC.
For additional particulars, please see this Latham weblog put up. |
| Regulatory Framework Assessment | In July 2021, HM Treasury launched the Future Regulatory Framework Assessment to switch better rule-making powers to the FCA. The session closed on 9 February 2022. The Monetary Providers and Markets Invoice will implement the outcomes of this overview.
For additional particulars, please see this Latham weblog put up. |
| Different Suggestions | Stakeholders are awaiting progress on the next trade considerations regarding the broader monetary ecosystem that have an effect on the attractiveness of the UK as an inventory venue:
· Unlocking pension funding · Aggressive tax setting · Small and medium enterprises (SME) analysis provision |
