Lord Hill Listing Rules review: a breath of fresh air

We are very pleased to see the extent of Lord Hill’s review into the Listing Rules, published this morning.

Anyone who has been working with growing companies considering their funding options or a transaction will know how daunting the prospect of FCA approval of a prospectus can be. It introduces uncertainty into the best planned timetables, sometimes lasting for months.

Phrases such as “rebranding and repositioning the LSE’s standard listing segment to increase its appeal to companies of all sizes and types” and plans to “simplify and streamline processes, encourage a more dynamic regulatory regime,” will inject new energy into conversations with growing companies who might otherwise delay a decision to list or resort to private equity.

The review also references the potential future treatment of admission to a regulated market and offers to the public separately, in the hope that the breadth and maturity of UK capital markets can be reflected. An update to the Financial Conduct Authority’s statutory objectives to include a duty to take into account the UK’s attractiveness for businesses will be a welcome addition.

We look forward to the promised consultation and the prospective changes to the Listing Rules.