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
AQ Metrics authorised as ARM by Central Bank of Ireland
08 January 2018 | Dublin | Reporter: Jenna Lomax
The Central Bank of Ireland has authorised AQ Metrics as an approved reporting mechanism
Industry participants react to MiFID II
05 January 2018 | London | Reporter: Jenna Lomax
After MiFID II went live two days ago (3 January), industry participants share their views about what it actually means for the industry going forward
MiFID II goes live
03 January 2018 | London | Reporter: Becky Butcher
The second Markets in Financial Instruments Directive (MiFID II) has now become effective as a part of EU legislation
ESMA delays LEI requirements for MiFID II
22 December 2017 | Paris | Reporter: Becky Butcher
The European Markets and Securities Authority (ESMA) has issued a delay to the enforcement of the LEI requirements for the MiFID II
EFAMA welcomes EC proposal
21 December 2017 | Brussels | Reporter: Becky Butcher
EFAMA has welcomed the European Commission’s proposal for a directive and regulation to establish a self-standing prudential regime for investment firms
Euronext’s ARM and APA approved
14 December 2017 | Paris | Reporter: Stephanie Palmer
Euronext has been approved by the French regulator to provide approved publication arrangement and approved reporting mechanism services to investment firms in Europe, under MiFID II
GCF: Concerns linger around MiFID II compliance
06 December 2017 | London | Reporter: Becky Butcher
With only 28 days left to go before MiFID II comes into effect, less than half of Global Custody Forum attendees feel they will be compliant in time
More regulation news