[World Corporate Law News] FCA Consults on Changes to IPO Research Rules

Editorial Team – [2026] 185 taxmann.com 950 (Article)

World Corporate Law News provides a weekly snapshot of corporate law developments from around the globe. Here’s a glimpse of the key corporate law update this week.

1. Securities Law

1.1 FCA Consults on Changes to IPO Research Rules

On 27 April 2026, the FCA released that it is consulting on removing the requirement for a 7-day delay before connected research on an IPO can be published. It is also consulting on removing rules that require firms to provide independent analysts with the same information as their own research analysts.

These rules were introduced in 2018 to encourage the production of unconnected research, but they have not achieved that aim. However, feedback from the market suggests that they have also added complexity, risk and cost to the IPO process, and have put the UK at a competitive disadvantage compared with other international listing venues.

Removing these requirements would simplify the IPO process and improve the conditions for listing in the UK. This would support the FCA’s work to strengthen the UK’s capital markets and support growth and competitiveness.

Jon Relleen, Director of Infrastructure & Exchanges, Supervision, Policy & Competition Division, said:

“Market feedback has been clear that these rules can introduce additional risk, cost and complexity without delivering the intended benefits. We are committed to reducing friction, supporting growth, and ensuring the UK remains a competitive and trusted place for companies to raise capital.”

No other rule changes are proposed at this stage. However, the paper includes discussion questions on whether further reform of the 2018 IPO information flow rules may be appropriate.

This consultation helps deliver one of the commitments set out in the FCA’s letter to the Prime Minister in December 2025.

Source – Press Release

1.2 FCA spearheads global action to stop illegal finfluencers

On 24 April 2026, the FCA announced that it had led an international initiative to curb illegal finfluencers who put consumers’ money at risk.

Seventeen regulators worldwide participated in this ‘week of action’, which began on 20 April 2026 and included enforcement measures, consumer awareness campaigns, and educational programmes aimed at finfluencers seeking to operate responsibly.

In the UK, the FCA:

Secured a guilty plea from Geordie Shore’s Aaron Chalmers for unlawful financial promotions on social media. Criminal proceedings have also been initiated against two other individuals for similar offences.
Issued four targeted warning letters to individuals suspected of engaging in unauthorised financial promotions.
Published 34 warning alerts against unauthorised firms or individuals and updated a further 14 alerts.
Requested the takedown of 120 social media accounts hosting illegal finfluencer content. Across these accounts, the FCA identified 1,267 unlawful financial advertisements, which had reached at least 2,338,372 UK users. Notably, 66% of these advertisements originated from firms or individuals already included on the FCA’s Warning List.

The FCA has urged social media platforms to take a more proactive role in preventing illegal financial promotions at the source, noting that current efforts are insufficient to enforce their own content policies.

Source – Press Release