UKEMA responds to latest FCA proposals for primary markets

The UK Equity Markets Association (UKEMA) has welcomed attempts to remove complexity and promote broad access to listings for a wider range of companies in its response to the FCA’s latest consultation on the Primary Markets Effectiveness Review.

A substantial majority of UKEMA members supported the FCA’s proposals to have a single market segment for equity securities, acknowledging that the standard segment is not achieving the goal of attracting commercial companies to the London main market who are seeking a more flexible regulatory structure.

UKEMA’s response set out that it is not in favour of proposals for mandatory and supplementary continuing obligations, which it cautioned would create a de facto two-tier segment, and so risk failing to meet the objectives of removing complexity and promoting broad access to listing.

Sunil Dhall, Chair of the UKEMA said: “The UKEMA believes that changes are needed to increase the attractiveness of listing by reducing unnecessary complexity. We have put forward clear views on how this can be done, including by moving to a new system with adequate disclosure and choice at its core.”

The UKEMA’s response to the Primary Markets Effectiveness Review can be viewed here.