14 February 2017
Reporter: Stephanie Palmer
FCA seeks feedback on UK capital markets
The UK Financial Conduct Authority (FCA) has issued a discussion paper seeking feedback on how the UK capital markets can most effectively meet the needs of issuers and investors.

The paper, Review of the Effectiveness of Primary Markets: The UK Primary Markets Landscape, says it seeks to “prompt a broad discussion about the effectiveness of the UK primary markets landscape”.

It requests industry views on the appropriateness of the boundary between standard and premium listing categories, particularly with regards to overseas issuers and exchange-traded funds.

It will also look into the effectiveness of primary equity markets in providing capital for growth; at whether there is a role for a UK primary debt multilateral trading facility, and what structure this would take; and how to support better retail participation in debt markets.

According to the FCA, the paper will be of interest to: companies with UK-quoted securities, or those considering listing securities in the UK; firms advising issuers or investors in UK-quoted securities; and anyone investing or dealing in UK-quoted securities.

“It will be of interest to consumers who deal and invest in UK-quoted securities either directly or through institutions. It will also be of interest to issuers in their capacity as consumers of sponsor services,” the paper said.

The discussion paper was released following a meeting between the FCA and stakeholders including issuers, investors, sell-side firms and advisors, which sought initial views on potential improvement, and inspired the main topics of the paper.

The meeting and subsequent paper are part of the FCA’s work on improving UK primary markets, as set out in its 2016-17 business plan.

Andrew Bailey, chief executive of the FCA, said: “The FCA has an overarching strategic objective of ensuring markets function well, and a key part of that is ensuring the UK’s primary markets remain effective.”

“This review considers some important questions about the primary markets, and some potential enhancements, to ensure they continue to meet the needs of investors and issuers effectively.”

The FCA is accepting comment on the discussion paper until 14 May. The majority of responses will be open to public consultation, and any specific policy changes that arise as a result of the feedback will be issued in a further consultation paper.

Alongside the capital markets discussion paper, the FCA has also launched a consultation on proposed technical enhancements to its listing rules, considering improvements and guidance to ensure the rules meet the needs of issuers and investors.

More regulation news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
MiFID II challenges abound
22 March 2017 | Luxembourg | Reporter: Stephanie Palmer
Data requirements and target market rules under MiFID II could pose challenges for asset managers and distributors, heard attendees of the ALFI European Asset Management Conference
Maijoor: Brexit cannot mean regulatory competition
21 March 2017 | Luxembourg | Reporter: Stephanie Palmer
The European Securities and Markets Authority (ESMA) is taking steps to prevent “regulatory competition” between EU member states as the UK prepares to exit the union, Steven Maijoor, chair of the authority, has warned
EU market participants too busy for CMU
20 March 2017 | Brussels | Reporter: Drew Nicol
EU financial market participants are too bogged down in regulatory implementation to make the most of capital market opportunities, according to a BNY Mellon regional chief
Irish fund admins warned to buck up on outsourcing
16 March 2017 | Dublin | Reporter: Stephanie Palmer
The Central Bank of Ireland has issued recommendations to fund administrators that outsource part of their fund administration activities, following a review of outsourcing arrangements in relation to operational risk
FINMA approves first derivatives trade repository
14 March 2017 | Zurich | Reporter: Stephanie Palmer
SIX Securities Services has received approval from the Swiss Financial Market Supervisory Authority to officially launch its Swiss derivative trade repository, subject to certain conditions
EC unveils PRIIPs RTS amendments
09 March 2017 | Brussels | Reporter: Stephanie Palmer
The European Commission has released the updated regulatory technical standards for PRIIPs, responding to concerns from the European Parliament
NEX launches cross-regulation reporting platform
09 March 2017 | London | Reporter: Stephanie Palmer
NEX Optimisation is bringing its suite of regulatory reporting services under a single umbrella with the launch of its NEX Regulatory Reporting solution
More regulation news