FCA Moves to Scrap IPO Research Delays in Listing Push

The proposals, set out in CP26/14, would reverse rules introduced in 2018 under PS18/23 that were designed to encourage independent research coverage of newly listed companies. According to the FCA's press release, market feedback has been clear that the rules "added complexity, risk and cost to the IPO process" without delivering their intended benefits. The consultation closes on 29 May 2026.

What the FCA is proposing, and why the 2018 rules failed

The two changes are narrow but consequential. First, the FCA proposes removing the requirement that connected analysts, those employed by banks in the IPO syndicate, wait seven days after publishing a registration document before issuing research. Second, it would scrap the rule obliging firms to give independent analysts the same information provided to their own research teams.

Both requirements originated in the FCA's Asset Management Market Study and were formalised in PS18/23 in 2018. The logic was straightforward: if independent analysts received equal access and connected research was held back, unconnected coverage would flourish, giving investors a wider range of views before pricing.

That did not happen. According to the FCA, the rules "have not achieved that aim." Independent research houses did not materially increase IPO coverage. Meanwhile, investment banks and issuers criticised the regime during the 2023 Listing Rules overhaul, arguing that the delay introduced execution risk and put London at a disadvantage relative to other venues.

Jon Relleen, director of infrastructure and exchanges in the FCA's supervision, policy and competition division, said in the regulator's announcement:

"Market feedback has been clear that these rules can introduce additional risk, cost and complexity without delivering the intended benefits. We are committed to reducing friction, supporting growth, and ensuring the UK remains a competitive and trusted place for companies to raise capital."

No other rule changes are proposed at this stage, though the consultation paper includes discussion questions on whether further reform of the 2018 information-flow rules may be appropriate, according to the FCA.

How the changes would affect the IPO process in practice

For companies preparing to list, the practical effect centres on timeline compression and reduced process risk. Under the current regime, the seven-day blackout means syndicate banks cannot publish research immediately after a registration document is filed. That gap can slow momentum during the bookbuilding phase, a period when market conditions can shift rapidly.

Removing the delay would allow connected research to be published alongside, or shortly after, the registration document. For growth-company boards and their advisers, this shortens the window of vulnerability between announcement and pricing.

Dropping the information-parity rule would also simplify the logistics of analyst presentations and management roadshows. Under the existing framework, issuers must ensure independent analysts receive the same briefings as syndicate analysts, a requirement that adds scheduling complexity and legal risk without, as the FCA acknowledges, generating meaningful independent coverage.

Taken together, the changes would bring London's IPO research regime closer to the norms in New York and Amsterdam, where no equivalent restrictions apply.

UK listing competitiveness: where this fits in the reform programme

The consultation sits within a broader pattern of listing-regime reform that stretches back to Lord Hill's 2021 UK Listing Review. That review recommended sweeping changes to attract high-growth companies, many of which the FCA has since implemented through its overhauled Listing Rules, which took effect in 2024.

The competitive pressure is real. London raised roughly £1 billion in IPO proceeds in 2024, according to market data, compared with more than £16 billion in 2021. Several high-profile UK-founded companies have chosen to list in New York in recent years, citing deeper liquidity pools and higher valuations.

The FCA's December 2025 letter to the Prime Minister outlined a package of commitments to support UK growth and capital-markets competitiveness. CP26/14 delivers on one of those commitments, according to the regulator. The letter signals that further deregulatory measures are likely, though the FCA has not published a detailed timeline.

What growth-company boards should watch for next

The consultation is open until 29 May 2026. If finalised broadly as proposed, the rule changes could be in place before the end of the year, though the FCA has not confirmed an implementation date.

Boards weighing a London listing or secondary raise should note three things. First, the direction of travel is firmly towards simplification; the FCA is unlikely to reverse course. Second, the discussion questions in CP26/14 hint at further reform of IPO information-flow rules, meaning additional changes may follow in a subsequent consultation. Third, the December 2025 letter to the Prime Minister commits the FCA to a wider competitiveness agenda, so IPO research rules are one piece of a larger programme.

None of this guarantees a revival in London IPO volumes. Listing decisions depend on valuation, liquidity, investor appetite, and sector dynamics, factors well beyond the FCA's remit. But for boards that have London on their shortlist, the friction cost of choosing it is falling.