Investors have now been notified to expect substantial changes to how the UK’s prospectus regime functions, as the government has announced the outcome of a new review into the current regulations.
The advisory comes after UK ministers stated they would include several of the recommendations of the recent review of the present listing regime that was conducted by Lord Jonathan Hill, such as a move to delegate the details of rulemaking regarding prospectus content and requirements to the Financial Conduct Authority (FCA) going forwards.
The prospectus refers to a document that contains detailed financial information about a public company, encouraging and inviting investors to purchase its securities. While under present rules, all prospectuses require FCA approval prior to publication, the new reforms would empower the financial watchdog with broad discretion to select whether specific prospectuses must have approval.
Experts have commented that the changes are part of a collection of measures designed to reform the current listing regime in Britain, which many in the financial sector feel have become slow and burdensome.
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While ministers have pledged to legislate when time allows in the current parliamentary schedule, many of the reforms relate to EU legislation amendments, making the revisions a priority for the UK Treasury.