FTSE Index responds to FCA Listing reforms

FTSE Russell have published proposed changes to its UK Index Series in response to the FCA's proposed reforms to the listing regime in the UK.

Since the FCA issued its proposals, confirmation of the FTSE's eligibility criteria has been eagerly awaited by the market, and FTSE Russell have now confirmed that all companies listed in the proposed new 'equity shares (commercial companies)' category (ESCC), along with all funds listed in the Closed-Ended Investment Fund category, will be eligible for potential inclusion in the FTSE UK Index Series (provided all other inclusion requirements are satisfied, for instance, the entity satisfies the minimum free float of 10%).

FTSE Russell are not expecting an immediate impact on the Index population from day one of the new listing regime, given existing premium-listed issuers are expected to be mapped across to the new ESCC category or the closed-ended investment fund category - see our blog on the FCA proposals and transitional arrangements here (and our blog on the more recent detailed Listing Rules and Principles here, which also deals with investment funds). By way of reminder, the FCA expect the changes to the listing regime to become effective early in the second half of 2024. Once the final listing regime changes have been confirmed by the FCA, FTSE Russell intends to publish the updates soon thereafter, subject to approval by the FTSE Russell Index Governance Board after consideration of any further updates announced by the FCA.

The FTSE Russell summary document (combined with FAQs) is available here, and our blogs on the FCA proposals are available here and here.

Published 20 March, 2024