The FCA is pressing ahead with an overhaul of the UK listing rules aiming to boost growth and innovation on the UK stock markets. This session will provide an update on these changes, with ample opportunity to discuss the implications – for the economy, companies and individual directors.
When companies go public for the first time they have many listing venue options, notably the US and Europe. Seemingly there is a perception of greater valuations and depth of liquidity being available in alternative markets.
In addressing this perception, and risk to the UK’s London Stock Exchange, the UK’s listing regulator (the FCA) has introduced a range of de-regulatory reforms. The new listing rules, published on the 11th July, are the biggest changes to the listing regime in over 3 decades.
This Directors Circle session will look at the past and current government’s desire to make capital raising easier in the UK. We will be joined by:
- John Reilly, a Director in PwC’s UK Capital Markets team;
- a listed Non-Executive portfolio NED; (details tbc)
- Neil Patel, Head of TMT in Investment Banking at Peel Hunt.
During this session we will look at what directors might now want to consider to safeguard themselves and their board capital raising decisions in light of this recent de-regulation. We will also gauge our panellist’s views on others in terms of how the acknowledged risk of this important change impacts them individually.
More about these changes
The aim of the new rules is to support a wider range of companies to issue their shares on a UK exchange, increasing opportunities for investors.
The new rules change the nature of risk for non-executive directors as they remove the need for shareholder votes on significant or related party transactions and offer boards flexibility around enhanced voting rights and the previous need for financial information assurance in many cases for significant transactions. For example, the FCA will no-longer provide a ‘stamped’ pre-vetted circular for boards, signed off by the FCA and advisors.
This new rule book has been talked about for some time but it is interesting to note that this is one of our new Chancellor of the Exchequer’s first official policy changes;
Rachel Reeves said in the FCA’s Press Release dated 11th July 2024;
‘The financial services sector is central to the UK economy, and at the heart of this government’s growth mission. These new rules represent a significant first step towards reinvigorating our capital markets, bringing the UK in line with international counterparts and ensuring we attract the most innovative companies to list here.’
The FCA itself notes that the new ‘rule book’ presents a significant transfer of risk to investors, and NEDs we argue, because of the move towards a buyer beware model. However, what remains unclear is how these reforms will impact the responsibilities of Boards and in particular you as non-executive directors personally, where firms are undergoing corporate activity amidst the most fundamental change in the operation of the UK’s capital markets in over 20 years.
Our speakers will share with you the following before we move to Q&A;
- John will share with you the latest updates on the proposals from the FCA and provide insight on what this will mean for directors of listed companies in the future, as well as perspectives on how this compares to the corporate transaction eco-system that exists today.
- Neil will talk us through his thoughts on these new rules and explain how Peel Hunt’s Investment Banking team work with newly listed firms and or those listed companies undertaking a significant transaction.
Speakers
John Reilly
John is a Director in PwC’s UK Capital Markets team, working with boards of firms as they deliver their IPO and as they continue with corporate actions as listed businesses.
John has worked as a chartered accountant at PwC for 20 years, enjoys youth football coaching and in his younger years was a qualified Level 4 Football Association referee.
Neil Patel
Neil Patel is Head of Technology and Media in Investment Banking at Peel Hunt. For over two decades, he has advised FTSE/AIM listed and private companies on corporate strategy, capital raising and M&A. He recently led the Main Market IPO of Raspberry Pi, where Peel Hunt acted as Joint Sponsor and Joint Global Co-ordinator, raising gross proceeds of £179m.
This event is included in our Directors’ Circle membership. Current Directors’ Circle members have received a calendar invitation already – if you haven’t, please get in touch with Sara via contact@wbdirectors.co.uk
With thanks to our event host
