Overview
In this note, we discuss the key policy proposals announced as part of the Chancellor’s Mansion House Speech, and accompanying Leeds Reforms, that are of interest to small and mid-sized quoted companies. At the end of this document, we also cover the FCA’s newly published prospectus rule changes.
Mansion House Speech
Chancellor of the Exchequer, Rachel Reeves, delivered her second Mansion House Speech on Tuesday 15 July, setting out the Government’s vision for the future of the UK’s financial services sector. The speech reaffirmed the Government’s commitment to enhancing the UK’s competitiveness as a global financial centre, and was underpinned by a range of regulatory reforms and strategic growth measures.
We welcome the direction of travel outlined in the Mansion House address, particularly the focus on creating a more proportionate regulatory environment and boosting retail participation in capital markets.
Financial Services Growth and Competitiveness Strategy
The Government’s 10-year strategy aims to reposition the UK as the leading global hub for financial services by creating a more agile, proportionate, and predictable regulatory framework. Central to this vision is a package of reforms to reduce regulatory friction and improve alignment between financial regulation and the Government’s economic growth objectives.
The Strategy’s focus on streamlining regulation and proportionality is a positive step, and the QCA will be responding to the Treasury’s consultation on reforms to the regulatory environment to ensure that the UK’s financial regulators’ work is consistent with their overarching remit and long-term strategy.
UK Retail Investment
Boosting retail investor participation was earmarked as a central component of the Government’s Strategy to unlock more domestic capital for UK companies. To achieve this, the Government plans to address risk aversion in the system, and will look to boost retail investment by focusing on reforms to advice and targeted support through the advice guidance boundary review.
New forms of targeted consumer support will be introduced by ISA season 2026, enabling individuals to better understand their investment options. Alongside this, an industry-led public awareness campaign will also be launched to promote the benefits of investing in the domestic economy.
In addition, from April 2026, Long-Term Asset Funds (LTAFs) will be moved from the Innovative Finance ISA to the Stocks & Shares ISA.
We welcome the Government’s ambition to build a stronger retail investment culture as well as recognition from the Government that a disproportionate focus has been placed on the potential risks of equity investment and an insufficient emphasis on its potential returns, in contrast to cash savings.
However, we would like to have seen greater urgency placed on encouraging investment in UK equities within the ISA tax wrapper and will continue to push for the revival of the UK ISA proposal.
Digitisation Taskforce: Final Report
As part of the Treasury’s package of reforms, the Digitisation Taskforce’s final report was released alongside the Government’s response to it.
The taskforce set out to examine how the UK can remove the use of paper share certificates for traded companies and to improve the system of share ownership so that investors are better able to exercise their rights as shareholders.
The Government has accepted all of the report’s recommendations including the creation of a new technical group to oversee the finalisation of the digitisation process. The first stage of the digitisation process will see current paper share registers replaced by digitised versions which the report recommends should take place before the end of 2027.
The next stage of the process includes ensuring improvements to the intermediated system are made in order for shareholders to properly exercise their rights through intermediaries. Once this has been achieved, all shares will be moved into the intermediated system. Also included in the final report’s recommendations is a new Bill of Shareholder Rights.
We welcome the UK’s move to a digitised shareholding infrastructure and believe the taskforce’s recommendations should improve communication between companies and their shareholders.
Listings Taskforce
As part of its Financial Services Growth and Competitiveness Strategy, the Government has announced that it will set-up a Listings Taskforce to support businesses to list and grow in the UK.
While there is currently limited detail on the taskforce’s remit, the Government states that “HM Treasury will work in partnership with the Office for Investment, and industry, to ensure the UK attracts the best and brightest businesses from around the world, and right here in the UK, to list on UK markets.”
Given the current low levels of IPO activity in the UK, the Government’s focus on listings is much needed, and we look forward to engaging with the taskforce once it is established.
Prospectus Rule Changes
The FCA has published its final rules for its reform of the UK’s prospectus regime. The new Public Offers and Admissions to Trading Regulations – which will come into effect from 19 January 2026 – are intended to streamline and reduce the costs of the capital-raising process for public companies.
Importantly, the rules will be relaxed so that a prospectus is no longer automatically required for further issuances of existing share capital below a threshold of 75%, up from its previous level of 20%.
In addition, the six-day public access window for a prospectus before an offer close will be amended to three days, in an effort to encourage greater retail participation in IPOs.
Additional changes include improved flexibility for companies in preparing the prospectus summary, thereby making the document more accessible for retail investors.
The reforms will also ensure that initial public offerings (IPOs) on Primary Multi-lateral Trading Facilities (MTFs) – such as AIM and Aquis – that involve retail participation are subject to the same prospectus requirements as offers made to qualified investors.
In our response to the FCA’s engagement papers in 2023, and subsequent consultation in 2024, we supported the above proposals and welcome their adoption by the regulator.
If you have any questions in relation to any of the above, please get in touch with the QCA’s Policy Team by emailing ben.cornwell@theqca.com or suleiman.ashraf@theqca.com.
