UK: Listing Rule amendments - FCA policy statement - dual class shares, free float and minimum capitalisation

New Listing Rules come into force today, following a consultation by the Financial Conduct Authority and, before that, the publication of the UK Listings Review report and recommendations. Further information about the changes now in place can be found in the FCA's policy statement, available here (pdf). The principal changes include: (1) permitting dual class share structures within the premium listing segment; (2) lowering the minimum free float from 25% to 10%; and (3) for ordinary commercial companies listed on the premium or standard segments, increasing the minimum market capitalisation threshold from £700,000 to £30 million (so, lower than the £50 million originally proposed). 

UK: FCA consultation - primary markets effectiveness review

The Financial Conduct Authority has, today, published a consultation paper the aim of which is to begin a broad discussion of the purpose and value of the UK listings regime alongside seeking views on specific proposals: see here (pdf).

The specific proposals include: [a] in certain circumstances allowing dual class share structures within the premium listing segment; [b] reducing the free float requirement from 25% to 10%; and [c] increasing the minimum market capitalisation for premium and standard listing segments for shares in companies other than funds from £700,000 to £50 million.  In addition, the paper notes that while no specific proposals are being put forward (at this stage) in respect of the track record requirements for listing, the FCA will be providing further information about its willingness to provide "flexibility" in respect of the existing requirements.

UK: The UK Listing Review - recommendations published

The UK Listing Review, chaired by Lord Hill, published its recommendations today: see here (pdf). As has been widely predicted, the Review is recommending that premium listed companies should be permitted dual class share structures (subject to certain conditions); that HM Treasury should conduct a fundamental review of the prospective regime, including the liability rules relating to forward-looking information; and free float requirements should be reviewed, lowering the minimum absolute requirement to 15%.

UK: The UK Listings Review - terms of reference and call for evidence

The terms of reference, and a call for evidence, for the recently announced review of the UK listings regime were published today: see, respectively, here and here.

The review, which is being led by Lord Hill of Oareford, has been asked, to quote directly from the terms of reference, to propose recommendations "for how to boost the UK as a destination for IPOs and optimise the capital raising process for companies seeking to list on the main UK markets". 

The call for evidence invites views on a number of matters such as free float requirements, dual class structures, track record requirements, prospectuses and dual and secondary listing. Various questions are asked including whether dual class share structures should be permitted in the Premium Listing segment of the London Stock Exchange and should the current free float requirement of 25% be changed. 

UK: FTSE UK Index Series - free float minimum to become 25%

Following its recent consultation, the FTSE Group has announced that the minimum free float for UK incorporated companies in the FTSE UK Index Series will be increased from 15% to 25%, from 1 January 2012: see here (.doc). Those companies already admitted with a lower free float have 24 months to comply with the new requirement. The FTSE Group has also announced
FTSE will undertake further consultation on whether a higher threshold would be appropriate, or whether additional governance standards should be incorporated in the FTSE All-Share Index.

UK: FTSE Group consultation on minimum free float requirements

The FTSE Group is undertaking a consultation on the minimum free float requirements for UK incorporated companies in the FTSE UK Index Series: see here. It is proposed that the current minimum of 15% should be increased to 25% for companies seeking inclusion in the FTSE UK Index Series.