The UK’s Financial Conduct Authority (FCA) is planning a review of recently-adopted reforms to assess whether certain listing requirements for investment funds are too onerous.
On Tuesday, the regulator said it’ll be undertaking a consultation on possible changes to the U.K. listing rules, which were overhauled in 2024 as part of an effort to rejuvenate public listings.
Now, the FCA reports that it has heard complaints about certain aspects of those rules — in particular, how requirements for closed-end investment funds adhere to certain “risk-spreading” expectations in order to be listed “may be unduly restrictive.”
Among other things, those rules require listed investments to invest in a diversified portfolio to mitigate risk, to adopt policies for spreading risks and setting exposure limits, and to not engage in frequent trading.
The review will be used to assess whether to make changes to those requirements.
Additionally, the FCA said it’ll be reviewing how the rules “ensure that boards support strong shareholder rights and engagement and manage conflicts of interests.”
The regulator aims to complete this work by the end of the year, following a forthcoming public consultation.