FCA removes seven-day IPO research wait as London listings shrink

The FCA's rule change shortens the IPO process by seven days and eases information-sharing burdens for companies listing in London.

The Financial Conduct Authority removed a seven-day waiting period for connected research during initial public offerings Wednesday, cutting compliance costs and execution risk as London's equity capital markets raised just $9 billion in the first half of 2026.

"By making the UK listing regime more efficient, we are supporting the growth and competitiveness of UK capital markets," Jon Relleen, director of infrastructure and exchanges at the FCA, said.

The final rules also simplify information-sharing requirements, letting issuers share data only with analysts tied to their IPOs rather than running a costlier process with independent analysts. The changes reverse restrictions introduced in 2018 and bring London in line with New York standards, the regulator said.

The 2018 rules required a seven-day gap between publication of a prospectus and the release of research from connected analysts, a delay the FCA concluded added costs and execution risk for issuers without a clear benefit to investors. Under the new regime, connected analysts can publish research alongside prospectuses, shortening the IPO timetable by a week.

The reforms target a decade-long decline in London listings, after chip designer Arm, gambling group Flutter and fintech Wise moved primary listings to the United States. The UK's equity capital market raised $9 billion in the first half of 2026, 1.2 percent of the global total and less than the amounts raised in Spain, Germany, France and Switzerland, according to Mergermarket data.

London's shrinking public market

The rule change follows a wave of take-private deals this year, with foreign takeovers of UK names Intertek, Tate & Lyle and Segro, partly because British stocks have become cheaper relative to US peers since the start of the Iran war. This week the Financial Times reported that AstraZeneca was weighing a merger with US peer Bristol Myers Squibb, raising fresh concern that London could lose its second-most valuable company.

"The fear will be that such a move, coming on top of the company's recent direct listing in New York, would pull its centre of gravity across the Atlantic and ultimately see the UK stock market lose one of its crown jewels," said Russ Mould, investment director at AJ Bell.

The FCA's changes are part of a broader 2026/27 work programme that proposed a 1 percent increase in minimum and application fees, an expanded Supercharged Sandbox and greater use of artificial intelligence in authorisations and supervision. The regulator has been consulting on the listing changes since late last year.

"These are sensible, targeted reforms that remove unnecessary friction from the UK IPO process," said Inigo Esteve, a capital markets partner at law firm White & Case. "Shortening the timetable for issuers will help reduce execution risk during the IPO period, while simplifying information sharing requirements will ease the administrative burden for companies and their advisers."

The structural valuation discount and the greater liquidity of US markets remain larger obstacles than the IPO process itself. If the reforms succeed in drawing more issuers, they would benefit London Stock Exchange Group and the investment banks that underwrite UK floats; if not, the $9 billion first-half tally leaves little room for further erosion of the UK's share of global equity capital markets. The FCA said it expects the finalised rules, on which it has consulted since late last year, to help replenish the UK's depleted stock market, though it offered no timeline for measuring the impact.

This article is for informational purposes only and does not constitute investment advice.