The Financial Conduct Authority (FCA) is set to unveil its final rules for Public Offer Platforms (POPs) in summer 2025, with the new regime expected to come into force in January 2026. This initiative is part of the broader Public Offers and Admissions to Trading Regulations (POATRs), aiming to modernize the UK’s capital-raising framework and enhance investor protection.
Key Highlights of the Upcoming POP Regime
New Regulated Activity: Operating a POP will become a regulated activity, allowing firms to facilitate public offers of securities outside traditional public markets, targeting a broad investor base, including retail consumers.
Due Diligence and Disclosure: Firms operating POPs will be required to conduct appropriate due diligence on companies making public offers and ensure that investors receive accurate and sufficient information to make informed decisions.
Liability and Redress: The FCA proposes a framework outlining the liability of POP operators and mechanisms for investor redress, aiming to bolster confidence in this market segment.
Integration with POATRs: The POP regime is a component of the POATRs, which will replace the UK Prospectus Regulation. This integration seeks to streamline capital-raising processes and reduce regulatory burdens, particularly for smaller companies.
Timeline
Consultation Period: The FCA’s consultation on the POP regime (CP24/13) opened on 26 July 2024 and closed on 18 October 2024.
Final Rules Publication: The FCA plans to publish the final rules for the POP regime in summer 2025.
Implementation Date: Subject to agreement with the Treasury, the new regime is expected to come into force in January 2026.
