The success of listing reforms should provide the industry with confidence that “bold reforms are possible, even where there are diverting views,” Financial Conduct Authority executive director of markets and international, Sarah Pritchard, has said.
However she warned the journey was not over yet, during a speech at the Capital Markets Industry Taskforce conference today (September 6).
She explained the listing rules were introduced to make sure that UK capital markets are “race fit”.
“Put simply, companies raising capital and investors deploying it have global choices. We want them to choose the UK,” she added.
Pritchard said the FCA introduced a “simplified regime” that maintains high standards and compares well internationally which the regulator hopes will help boost UK stock markets.
“We want to support investors to make their own choices too about the companies they invest in, through timely and appropriate disclosures," said Pritchard.
However, she added that, though the FCA has “come a long way” so far, “the journey isn't over yet”.
Pritchard also pointed out that the FCA hasn’t stood still since the listing reforms as, just two weeks later, it set out proposals for a new public offers and admissions to trading regime.
It argued this would make it cheaper and easier for companies to raise money in the UK.
“We progressed this work in tandem because we know the importance of making sure the whole markets and ecosystem works,” she stated.
“Our proposals were informed by close engagement with the markets.”
Pritchard added, as the authority proceeds with its reforms, the FCA will be changing how it engages with the market.
“Markets are always evolving and we know that we cannot stand still as we focus on growth and innovation,” she explained.
“We want to be agile, but we want our interventions to be evidence-based and future-proof.
“You can expect us to take the same approach in convening, listening and engaging as we explore ways to harness these opportunities.”
Pritchard concluded the success of the reforms are a “marathon not a sprint”.
“Success isn’t measured in days, weeks, or months,” she explained, “success is measured in the long-term economic growth of UK capital markets”.
tom.dunstan@ft.com
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