UK IPO research rules: FCA proposes major simplification

The Financial Conduct Authority (FCA) proposes two key rule changes to streamline the UK's initial public offering (IPO) process.

The regulator plans to remove the mandatory 7-day delay for publishing connected research and eliminate the requirement for firms to provide independent analysts with the same information as their own.

Introduced in 2018, these rules aimed to foster unconnected research but failed to achieve this objective.

Instead, market feedback highlighted that they introduced unnecessary complexity, increased risk, and raised costs for IPOs, ultimately placing the UK at a competitive disadvantage compared to other international listing venues.

Jon Relleen, director of infrastructure & exchanges, supervision, policy & competition division, emphasized the FCA's commitment: 'We are committed to reducing friction, supporting growth, and ensuring the UK remains a competitive and trusted place for companies to raise capital.

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Removing these specific requirements is intended to simplify the IPO process significantly, thereby improving the overall conditions for companies seeking to list in the UK.

This initiative directly supports the FCA's broader strategic goals of strengthening the UK's capital markets and enhancing its global competitiveness and growth prospects.

The consultation paper, officially designated CP26/14, focuses specifically on 'Changes to information flows for UK equity IPOs.'

This effort also fulfills one of the key commitments outlined in the FCA's letter to the Prime Minister in December 2025, underscoring the strategic importance of these proposed reforms for the UK's financial landscape.