Securing Corporate Funding for Mid-Market Firms

As a result of the intro of the UKLR sourcebook in July 2024, both the London Stock Exchange (LSE) and FTSE Russell made consequential modifications to their rules. In July 2024, the LSE verified changes to its Admission and Disclosure Standards to show the collapse of the previous premium and basic listing segments into the new commercial company classification.

It then provided a summary and FAQs confirming its view when the last UKLR sourcebook was released in July 2024. One of the procedures proposed as part of the Edinburgh Reforms in December 2022 was the establishment of the Accelerated Settlement Taskforce, chaired by Charlie Geffen. The objective of the taskforce was to think about the possible benefits of the UK transferring to a T +1 securities settlement cycle and describe how this change might be carried out.

, chaired by Sir Douglas Flint.

Securing Corporate Funding for Mid-Market Growth

In July 2023, the taskforce published an Interim Report (read our summary here) which made a variety of recommendations, consisting of: legislation needs to be brought forward, and company short articles of association altered, as soon as practicable to stop the issuance of brand-new paper share certificates; the government should advance legislation to require dematerialisation of all share certificates at a future date; the government ought to seek advice from company and investor representatives on the favored disposition of "recurring" paper share interests and whether a time limit ought to be enforced for the recognition of untraced Ultimate Beneficial Owners (UBOs); andintermediaries need to have a responsibility, as a condition of participation in the clearing and settlement system, to put in location common technology that enables them to respond to UBO demands from providers within a very short time frame.

ANSR July UK PRs

Digitisation would target listed business with a view to reducing expenses and waste, and improving shareholder interaction. The report proposes extra steps to make sure that UBOs within the intermediated securities chain would have the ability to work out investor rights that are currently just ensured for signed up shareholders, in addition to measures to enhance interaction between business and UBOs.