FCA Reconsiders 7-Day IPO Research Delay Amid Concerns Over Costs and Market Risk
The UK Financial
Conduct Authority has opened a consultation on changes to its rules governing
information sharing during equity initial public offerings. The review focuses
on requirements introduced in 2018 and how they have operated in practice.
Singapore
Summit: Meet the largest APAC brokers you know (and those you still don’t!).
The FCA said the 2018
framework was designed to encourage the production of unconnected pre-deal
investment research during the IPO process in the UK. The aim was to improve
the availability of independent analysis ahead of listings and support more
informed investment decisions.
The regulator said
feedback from market participants suggests the rules have not fully achieved
their intended outcome. It noted that equal information sharing requirements,
including a “7-day delay” applied to connected research, may have increased
market risk and raised costs for companies seeking to list in the UK.
As part of the
consultation, the FCA is proposing two main changes. First, it wants to remove
the 7-day waiting period between the publication of an approved prospectus or
registration document and the release of connected IPO research.
Second, it proposes
removing the rules that require syndicate banks producing connected IPO
research to share the same information with external, unconnected analysts as
they do with their internal research teams.
FCA consults on IPO research rules to simplify process https://t.co/ewFS6UFOWL
— FT Adviser (@FTAdviser) April 27, 2026
Market Stakeholders Invited to Respond
The regulator is also
seeking views on other parts of the 2018 IPO information flow framework, to
assess whether further changes could improve how information is distributed
during the IPO process.
The consultation
applies to a wide range of market participants, including prospective issuers,
retail and institutional investors, investment advisers, brokers, independent
research providers, law firms involved in IPOs, investment banks, and sponsors.
The FCA has set 29 May
2026 as the deadline for responses. Submissions must be made through its online
response system.
The UK Financial
Conduct Authority has opened a consultation on changes to its rules governing
information sharing during equity initial public offerings. The review focuses
on requirements introduced in 2018 and how they have operated in practice.
Singapore
Summit: Meet the largest APAC brokers you know (and those you still don’t!).
The FCA said the 2018
framework was designed to encourage the production of unconnected pre-deal
investment research during the IPO process in the UK. The aim was to improve
the availability of independent analysis ahead of listings and support more
informed investment decisions.
The regulator said
feedback from market participants suggests the rules have not fully achieved
their intended outcome. It noted that equal information sharing requirements,
including a “7-day delay” applied to connected research, may have increased
market risk and raised costs for companies seeking to list in the UK.
As part of the
consultation, the FCA is proposing two main changes. First, it wants to remove
the 7-day waiting period between the publication of an approved prospectus or
registration document and the release of connected IPO research.
Second, it proposes
removing the rules that require syndicate banks producing connected IPO
research to share the same information with external, unconnected analysts as
they do with their internal research teams.
FCA consults on IPO research rules to simplify process https://t.co/ewFS6UFOWL
— FT Adviser (@FTAdviser) April 27, 2026
Market Stakeholders Invited to Respond
The regulator is also
seeking views on other parts of the 2018 IPO information flow framework, to
assess whether further changes could improve how information is distributed
during the IPO process.
The consultation
applies to a wide range of market participants, including prospective issuers,
retail and institutional investors, investment advisers, brokers, independent
research providers, law firms involved in IPOs, investment banks, and sponsors.
The FCA has set 29 May
2026 as the deadline for responses. Submissions must be made through its online
response system.
