New Financial Conduct Authority (FCA) Conduct of Business Sourcebook (COBS) provisions will take effect
On 1 July 2018, the FCA’s new COBS provisions improving the quality of information which companies are required to make available to market participants during a UK Initial Public Offering (IPO) will take effect.
Why does it matter?
- restore the centrality of the prospectus as the main source of information to investors
- make the prospectus available to investors earlier in the IPO process and provide a more diverse range of views on the issuing company’s prospects, and
- improve the quality of research reports by introducing more competitive dynamics between connected and unconnected analysts.
The new provisions will need to be taken into account if you are considering a UK IPO. They will bring welcome improvements for individual retail investors participating in IPOs, or whose funds are being invested through institutional investors.
What action should you take?
- Review the new COBS provisions and consider to what extent these provisions impact your business.