Policy RoundUp – June 2026

June saw continued focus on the competitiveness of UK public markets, with policymakers, regulators and market participants examining how capital can be more effectively channelled into UK companies and how market structures can support growth, liquidity and investor engagement.

Liz Cole, Head of Policy - The Investor Relations Society
Policy RoundUp

These developments align closely with themes explored at the Society's 2026 Annual Conference, including UK equities, investor access, IPO readiness, activism and the evolving role of IR teams as trusted advisors in an increasingly complex market environment. They also build on areas where the Society has been actively engaging with policymakers and regulators in recent months, including retail participation, the treatment of public growth markets within Value for Money frameworks, and the design and implementation of reporting, data and market transparency frameworks that are internationally aligned, proportionate and workable for issuers in practice. 

Below are the key takeaways for IR teams, followed by highlights linking to the detailed items and source materials if you would like to explore any June developments in more depth.

Key takeaways for IR teams

  • Capital markets competitiveness remains a priority. Regulators and policymakers continue to pursue reforms aimed at improving listings, market functioning and access to capital. 
  • Pension capital and domestic investment remain central policy themes. A parliamentary report has renewed calls to strengthen links between UK savings and UK companies through greater pension investment in public markets.
  • Valuation, liquidity and shareholder engagement remain under scrutiny. Takeover activity and new research on bid processes highlight continuing concerns around investor dialogue and market transparency.
  • Reporting reform is increasingly focused on usability and proportionality. Regulators continue to explore ways to streamline disclosures while maintaining investor confidence.
  • Investor engagement and transparency remain under scrutiny. Developments across takeovers, dematerialisation and governance frameworks reinforce the importance of effective shareholder communication, visibility and engagement.

Highlights

CAPITAL MARKETS & PRIVATE CAPITAL

GOVERNANCE & ENGAGEMENT

REPORTING

DETAILED ITEMS

CAPITAL MARKETS & PRIVATE CAPITAL

Parliamentary report highlights structural gap in UK equity investment
A new Business and Trade Committee report, Investing in the UK economy, highlights a persistent gap between UK savings and UK investment despite the scale of domestic capital available. The report calls for stronger mechanisms to channel pension investment into UK equities and recommends a review of recent LSE and AIM reforms to support listings and market activity. The findings reinforce ongoing concerns about the depth of the investor base supporting UK public markets and the need to improve the link between UK savers and UK companies. 
Business and Trade Committee report

Investors flag gaps in takeover engagement
A new Investor Forum report raises concerns about how UK takeovers are conducted, highlighting that engagement with shareholders is often "too limited, too late and too constrained".
The report points to shortcomings in valuation transparency and board communication and calls for earlier and more meaningful dialogue to support investor decision-making during bid situations.
The findings build on wider concerns highlighted in recent months around valuation gaps, takeover activity and the health of UK public markets.
Investor Forum report

AIM proposals seek to streamline listings
The London Stock Exchange consulted on further changes to the AIM Rules, building on the 2025 Shaping the Future of AIM proposals.
Proposal included measures designed to simplify admissions, streamline disclosure requirements and provide issuers with greater flexibility in capital-raising activities.
The proposals form part of broader efforts to strengthen AIM's competitiveness as a market for growth companies.
AIM Rules consultation

FCA consults on investment company listing rules
The FCA has launched a consultation on proposed changes to the UK Listing Rules for closed-ended investment funds.
The proposals are intended to strengthen board independence and governance protections in situations involving substantial shareholders and investment managers, while preserving the benefits of shareholder activism and engagement.
For listed investment companies, the consultation reflects continuing regulatory focus on governance standards and shareholder protections.
FCA consultation

GOVERNANCE & ENGAGEMENT

Dematerialisation proposals raise shareholder transparency concerns
As the UK moves towards dematerialisation of shareholdings, industry commentary continues to highlight potential unintended consequences for issuers. In a recent interview for the Society, Gustav Pegers of MUFG Corporate Markets warns that changes to shareholder identification processes could increase costs and reduce issuer visibility. As reforms progress, maintaining practical and cost-effective access to shareholder information will be critical to supporting effective investor engagement and market transparency. 
Interview with Gustav Pegers

ESMA issues guidance as EU ESG ratings regime takes effect 
The EU ESG Ratings Regulation came into force on 2 July 2026, and ESMA has issued a statement clarifying how ESG ratings may continue to be published and distributed during the transition to the new authorisation regime. Existing providers that intend to continue operating in the EU must notify ESMA and apply for authorisation or recognition within prescribed deadlines, while firms using or distributing ESG ratings are expected to monitor ESMA's register of authorised and recognised providers.
This reflects increasing regulatory focus on the governance, transparency and reliability of ESG ratings used by investors, and follows wider efforts in both the EU and UK to improve confidence in ESG data and methodologies.
ESMA statement on ESG ratings transition arrangements

European Commission consults on CSDDD (due diligence) guidance
The European Commission has launched a consultation to support development of guidance for the Corporate Sustainability Due Diligence Directive (CSDDD).
The exercise seeks evidence on implementation challenges and stakeholder needs, with comments due by 24 July and final guidelines expected in Q1 2027.
While principally an EU development, it is relevant for UK-listed companies with European operations and reflects growing expectations around governance, risk management and supply-chain oversight.
EC Consultation

REPORTING

FRC expands sandbox to simplify corporate reporting
The FRC has launched a further round of sandbox initiatives aimed at reducing reporting burdens and supporting innovation.
This includes a second phase of its programme to simplify annual reports, focusing on streamlining disclosures and improving usability for investors, particularly among small caps.
The initiative reinforces the regulator's emphasis on clearer, more effective and proportionate reporting, with increasing focus on usability rather than disclosure volume to help companies produce more concise and decision-useful reporting.
FRC sandbox programme

FRC clarifies auditor responsibilities under Provision 29 disclosures
The FRC has published a new "Mythbuster" on auditor responsibilities in relation to Provision 29 declarations the UK Corporate Governance Code 2024. The guidance clarifies how auditors should approach boards’ new disclosures on risk management, internal controls and material control effectiveness, which apply for financial years beginning on or after 1 January 2026. While these disclosures sit outside the auditor’s formal opinion on the financial statements, the guidance highlights how auditors should consider them as part of their wider responsibilities regarding information contained in annual reports. As companies prepare for implementation, the guidance provides useful clarification on regulatory expectations and reporting processes.

FRC Mythbuster

FCA to simplify asset manager climate reporting
The FCA is consulting on proposals to simplify climate-related disclosure requirements for investment products following a review of its TCFD regime.
The proposals would replace more detailed product-level reporting with targeted, outcomes-focused disclosures, reflecting evidence that existing reporting can be overly complex and underused.
While focused on the asset management sector, the consultation signals a broader shift towards more proportionate and investor-focused reporting requirements. The consultation closes on 13 July 2026. 
FCA consultation

European Commission adopts revised ESRS
The European Commission has adopted revised European Sustainability Reporting Standards (ESRS) as part of its sustainability reporting simplification agenda. The changes reduce the number of mandatory datapoints by more than 60%, introduce additional flexibility for companies and seek to lower reporting costs while maintaining decision-useful disclosures for investors. Alongside the revised ESRS, the Commission has also adopted a voluntary sustainability reporting standard for companies outside CSRD scope, reinforcing the broader push towards more proportionate reporting requirements. The revisions form part of the wider Omnibus reforms and signal a continued shift towards more usable sustainability reporting frameworks. 
EC announcement