Regulations

Story: FCA Backs Down on Trading Rules After Industry Pushback

By Dan Saada

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UK regulators hit the brakes. The Financial Conduct Authority pretty much admitted it screwed up when new trading rules created a mess for companies trying to figure out…

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The whole thing started January 19 when the Public Offers and Admissions to Trading Regulations kicked in alongside changes to UK Listing Rules.

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The problem? Other rules in UKLR sections 6.4.4R(4) and related provisions still demanded immediate notification for new equity issues or public offers.

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The London Stock Exchange didn't stay quiet. On February 15, the Exchange called out the FCA for creating operational headaches. Companies couldn't figure out which rule to follow.

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FCA spokesperson Sarah Thompson said on February 20 the agency would consult with stakeholders including listed companies, legal advisors, and investor groups. The goal?

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The FCA basically threw in the towel on enforcement. The agency said it won't go after companies that skip immediate notifications if they previously used block listings.

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The Association of British Insurers jumped into the fray in January. Insurance companies do frequent public offers, and the ABI wants more flexibility for their sector's…

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Market participants can't plan properly. The FCA indicated draft revised rules might show up by mid-2026, but that's months away.

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The whole situation shows how post-Brexit rule-making can go wrong. The UK wanted simpler, more practical regulations after leaving EU frameworks.

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And the consultation process hasn't even started yet. The FCA plans formal consultations in coming months, but companies need clarity now, not later.

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The POATRs regime was supposed to mark a big shift toward market transparency. The 60-day notification period looked good on paper - consolidate reporting, reduce administrative…

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Insurance companies aren't the only ones worried. Any company doing frequent equity issues or public offers faces the same uncertainty.

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The agency admits the rules themselves haven't changed - just the supervisory approach. But that distinction doesn't help companies trying to figure out compliance requirements.

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Sarah Thompson confirmed the consultation would involve wide stakeholder input. The FCA wants amendments that address concerns without compromising oversight.

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The London Stock Exchange continues monitoring implementation closely. Their February 18 communication emphasized maintaining compliance while preparing for changes.

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