The FCA has published its feedback on CP 23/10 and a further consultation on detailed provisions for reform (including the first tranche of draft rules). Many of the proposals are broadly as they appeared in CP 23/10 (see here) and the new rules adhere to the philosophy of investor protection through disclosure rather than regulation – focussing on investors making informed decisions and holding company boards to account.
Where the FCA had previously been more cautious in relation to dual-class share structures, it is now taking a more permissive approach. However, not all the proposals reflect further relaxations. The FCA has sought to strike the right balance and increased notification requirements proposed in relation to class 1 transactions, are an example of this re-evaluation.
Recognising that the new single segment will mean a step-up in regulation for existing standard listed issuers, the FCA proposes a “transition” listing category, meaning no existing issuers will be forced to de-list.
For further information, please contact:
James Wootton, Partner, Linklaters
james.wootton@linklaters.com
