FSA Unveils Plans To Modernise UK Listing Regime

by Robin Pilgrim, LawAndTax-News.com, London

13 October 2004

The UK's Financial Services Authority (FSA) on Monday launched a consultation on the implementation of the EU Prospectus Directive and the planned modernisation of the UK's listing regime.

According to the regulator, the aim of the listing review is to simplify and modernise the existing UK regime to ensure that it provides an appropriate level of regulation, while retaining and strengthening the many features which have contributed to the integrity and competitiveness of UK markets.

The FSA is consulting on a restructured set of rules and guidance intended to:

• Simplify and modernise the Listing Rules;
• Implement the Prospectus Directive;
• Ensure that the UK offers an appropriate regime for regulating securities as well as the flexibility and transparency needed by those wishing to raise capital on the London markets, while providing sufficient protection for investors; and
• Ensure that the legal and regulatory environment continues to meet its regulatory objectives.

Managing Director of the FSA's Wholesale Business Unit, Hector Sants explained that:

"The FSA is committed to maintaining London as one of the world's most attractive capital markets and I believe that these new listing rules are a significant contribution to this goal. We have taken this opportunity to introduce principles for listed companies to align the Listing Rules with the FSA's own principles-based approach to regulation, and have also substantially simplified the rulebook."

He went on to add:

"I would like to emphasise the high calibre of input we have received from industry and investors. This has informed our approach on key issues, in particular the area of super-equivalence, where we have removed gold-plating in the debt market and retained key eligibility criteria, and regarding the retention of the sponsor regime for equity issuers. I am confident that these revised proposals will be welcomed by both market participants and investors."

The consultation period is set to end on January 14, 2005, after which the FSA intends to publish the final version of the new listing rules for implementation in July 2005.

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