IA comments on the FCA reforms to enhance the effectiveness of UK primary markets

Thursday 26th October

The Financial Conduct Authority (FCA) has today set out a package of measures designed to ensure that the UK’s primary capital markets remain effective. Commenting on the reforms, Galina Dimitrova, Director of Investment & Capital Markets said:

“We welcome and strongly support the reform of the UK IPO process as announced by the FCA today. As major allocators of capital funding, our members are committed to ensuring that the IPO process works effectively to help companies raise capital in the UK. Today’s reforms will benefit both companies coming to market and investors by significantly improving the range, quality and the flow of information available at IPO.

Since the publication of our report on Encouraging Equity Investment in the UK, we have engaged extensively with the FCA and other market participants to ensure that the IPO process addresses the substantial information asymmetry that currently exists between issuers and potential investors. This package of policy measures is significant and makes firm steps to address all these deficiencies. This will ensure that the London market continues to attract high-quality and well-run companies and that investors can make informed investment decisions, assisting both parties in the funding journey.”

For further information, please contact:

Helen Ayres
Media Relations Manager
[email protected]
T +44 (0)20 7269 4620
M +44 (0)7508 724 066

About the Investment Association:

• The IA champions UK asset management, supporting British savers, investors and businesses. Our 240 members manage £6.9 trillion of assets and employ 93,500 people across the UK
• Our members manage the pensions of 75% of UK households, provide 60% of capital market financing for UK businesses and fund 40% of initial public offerings of shares.
• Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
• Our purpose is to ensure investment managers are in the best possible position to:
  • Build people’s resilience to financial adversity
  • Help people achieve their financial aspirations
  • Enable people to maintain a decent standard of living as they grow older
  • Contribute to economic growth through the efficient allocation of capital
• The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
• The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.