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Amended FCA rules remove the obligation to facilitate unconnected analyst access and abolish delays on connected research, a welcome simplification of the UK equity IPO process
The Financial Conduct Authority (FCA) has published Policy Statement PS26/16 to remove and simplify certain rules in the Conduct of Business Sourcebook (COBS) governing the timing and sharing of investment research during UK IPOs. The changes take immediate effect.
The rule changes are being made as consulted on in Consultation Paper CP26/14. They address some of the recommendations of HM Treasury's Investment Research Review (2023), led by Rachel Kent. The review had found that the current regime – in place since 2018 – had lengthened IPO timelines, increased market risk and put the UK at a competitive disadvantage compared with other jurisdictions, while failing to generate meaningful independent research coverage.
Key changes include:
- removing the 7‑day (or 1‑day) waiting period between publication of an approved prospectus or registration document and publication of connected research; and
- removing the requirement for syndicate banks to share equal information with a range of unconnected analysts as a condition of connected research being published.
The FCA will retain the existing COBS rules requiring publication of a registration document before connected research and restricting pre-mandate analyst/issuer interactions, although it will continue to consider feedback on these topics for future reform.
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