The U.K.’s Financial Conduct Authority (FCA) published a discussion paper on Tuesday to examine whether the capital markets are working well for that companies that need financing and the investors who play in those markets.
The FCA is now seeking feedback on a variety of issues, including whether equities markets are effective at providing capital for growth, particularly early stage technology companies; to examine the listings rules, particularly its approach to foreign issuers; and to consider how to boost retail investor participation in debt markets.
“The FCA has an overarching strategic objective of ensuring markets function well, and a key part of that is ensuring the U.K.’s primary markets remain effective,” says Andrew Bailey, the FCA’s CEO, in a statement. “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 also launched a consultation on proposed technical changes to its listing rules that would, among other things, clarify the eligibility requirements for premium listings and change its approach to the suspension of listing for reverse takeovers.
These proposals stem from initial discussions, which identified several areas in which immediate technical enhancements could be made to the listing regime to increase its effectiveness, the FCA says.
The FCA also plans to consult on proposed measures to improve the information available in the initial public offering process.
Comments on the paper are due by May 14.