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Listings
Sarah Pritchard, Executive Director, Markets and Executive Director, International
As the financial markets regulator, we have a role in supporting the UK’s capital markets to work well and thrive. That’s why in July we announced the biggest change to listing rules in over 3 decades.
Our changes aim to encourage a wider range of companies to list in the UK. This, in turn, will increase opportunities for investors.
Our reforms introduce a new simplified regime designed to maintain high standards, compare well internationally and give investors the information needed to make decisions about the companies they invest in. We have removed some of the frictions and barriers that have previously prevented some companies, for example newer founder-led companies, from choosing the UK as a destination to list.
The new listings regime is a culmination of many consultations, roundtables and conversations with people across the market. We’ve made sure we have heard from as diverse a range of views as possible to help us get the balance of the rules right. We’ve been clear that the new rules may introduce greater risk. However, we believe this shift better reflects the risk appetite the economy needs to achieve growth.
On the day we published these rules, we also spoke with those affected by the changes, including sponsor firms and advisors, making sure they're ready for when the rules come into force on 29 July 2024.
These changes alone will not guarantee growth – regulation is only part of the answer. But in making these rules we are playing our part and will continue to work closely with government and industry to support sustainable growth together.
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Access to Cash
We’ve set out new rules to protect cash access in local communities.
We know that digital payments are increasingly popular. But while the increasing range options and services can make life easier, for many, the ability to use cash is still vital. Cash remains particularly important for consumers with vulnerable characteristics and many small businesses.
So, it is important that we manage the pace and impact of change, and people and businesses can continue to access and deposit cash if they need it.
From 18 September, designated firms will need to:
- assess local cash access services
- respond to local residents or groups who request assessments
- deliver additional services where gaps are found
- keep facilities, including bank branches and ATMs, open until additional services are available.
Banks and building societies should read our rules and ensure they can plug significant gaps in local access to cash services, like branches and ATMs.
It will also be of interest to firms providing current accounts to personal or business customers, consumers and businesses who rely on cash and groups representing the interests of those consumers and businesses, such as industry groups/ trade bodies and elected representatives.
PEPs
Under legislation adopted by Parliament, financial firms are required to do extra checks on so-called politically exposed persons (PEPs). This follows global standards set by the international Financial Action Task Force and implemented by more than 200 jurisdictions.
We’ve published a review of the treatment of Politically Exposed Persons (PEPs) and told firms to make improvements. Our review found that most firms did not subject PEPs to excessive or disproportionate checks. However, firms can do more to ensure parliamentarians, senior public servants and their families are not treated unfairly.
We are also consulting on changes to our Guidance for firms on applying a proportionate and risk-based approach to PEPs, their relatives and close associates for anti-money laundering purposes.
We welcome your views on our proposals. Our consultation closes on 18 October 2024.
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Remaining synthetic US dollar LIBOR settings – 3 months to go
The remaining synthetic US dollar LIBOR settings (1-, 3- and 6-month settings) are expected to cease at the end of September 2024.
These are the last remaining synthetic LIBOR settings and the last remaining LIBOR settings overall. Their cessation will mark the final milestone in the transition away from LIBOR.
Market participants with outstanding US dollar LIBOR exposures must make sure they are prepared for the end of these remaining synthetic US dollar LIBOR settings by the expected deadline.
UK EMIR reporting questions and answers
On 2 May 2024 we published a set of finalised UK European Market Infrastructure (UK EMIR) reporting questions and answers (Q&As) to help firms implementing the updated derivative reporting requirements under UK EMIR that apply from 30 September 2024.
At the same time, we published additional Q&As for consultation. Following industry feedback, on 12 July 2024 we published these Q&As in finalised form. We ask firms to note the Q&As apply from 30 September 2024 in line with the majority of the new reporting requirements.
FCA regulated fees and levies 2024/25
Fees enable us to recover the costs of delivering our priorities and achieving our objectives, as set out in our annual Business Plan. This ensures we can act faster to continue protecting consumers from harm, ensure market integrity, deliver on our public commitments, invest resources into new areas such as crypto and artificial intelligence, and encourage innovation within financial services.
We have published the final regulatory fee and levy rates for 2024/25 for the:
- FCA
- Financial Ombudsman Service
- levies collected on behalf of government departments
We’ve also published feedback to our consultation on the draft fee and levy rates.
Use our online fees calculator to work out the regulatory fees and levies you will need to pay.
Implementing the Overseas Funds Regime
The new Overseas Funds Regime (OFR) allows certain overseas funds that the UK Government have deemed equivalent, to be recognised by us via a streamlined process. This allows these funds to be marketed to UK retail investors. We will ask funds currently in the Temporary Marketing Permissions Regime (TMPR) to apply for recognition during allocated ‘landing slots’ on our website to transition across to the OFR.
New funds (i.e. those not in the TMPR) can apply any time after the gateway opens in September 2024.
On 17 July, we published our Policy Statement which sets out final rules for overseas funds that want to seek registration under the new regime.
Digital wallets
We've launched a call for information with the Payments System Regulator on the benefits and risks which digital wallets offer.
The use of digital wallets has grown rapidly over the last few years, and they represent one of the most significant ways in which big technology firms are playing an important role in the payments landscape.
Court sets dates for ‘finfluencer’ trials
Following a hearing at Southwark Crown Court on 11 July 2024, 8 people charged by the FCA with promoting unauthorised investments on social media pleaded not guilty. Two trial dates have been fixed for February and March 2027.
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Whistleblowing quarterly data 2024 Q2
Our latest data shows we received 253 reports, containing 641 allegations in total between April and June 2024. The top allegations included compliance and fitness propriety.
We closed 382 whistleblowing reports and took significant action in 25 reports (7%), this includes enforcement action. We reduced harm in 200 reports (52%), this includes writing to or visiting a firm.
Access to cash coverage in the UK 2023 Q2
Each quarter, we gather and update data on access to cash. This captures the locations of cash access points and other relevant information such as temporary closures, opening hours, and accessibility.
- 97.4% of the UK urban population are currently within 1 mile of a free-to-use cash access point offering deposits
- 98.2% of the UK rural population are currently within 3 miles of a free-to-use cash access point offering deposits
- the number of brick-and-mortar branches of the larger bank and building societies providing cash services fell by 210 branches, a decrease of 4.7%. This particularly affected the east and north east of England and Yorkshire & The Humber.
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Have your say - respond to our open consultations and discussions:
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Roundtable - Quantum computing in financial services
On 11 July we co-hosted a roundtable with FINRA on Quantum Computing and the Implications for the Financial Services Sector in New York.
- the key issues in quantum security
- the potential opportunities for quantum computing
- responsible innovation in quantum computing
- how to reduce the cyber security risks of this emerging technology
This event builds on previous insights on quantum security and security developed jointly with FINRA.
If you want to learn more about our ongoing work on quantum computing in financial services, please contact us at onthehorizon@fca.org.uk.
See the latest speeches from our executive team and our latest events
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