UK: What's next for equity capital markets?

Why should I read this?

On 19 May 2026, the Financial Services Regulatory Initiatives Forum published the tenth edition of its Regulatory Initiatives Grid. The Grid is generally published twice a year and sets out the regulatory pipeline for the next two years to help the financial services sector manage the operational impact of planned reforms.

After a busy period of reforms for UK equity capital markets, the Grid provides insights for traded companies and ECM advisers into what is next for the FCA in terms of regulatory reform in this area.

ECM developments on the horizon

Traded companies and ECM advisers should be aware of the following as noted in the Grid:

• Review of the Disclosure Guidance and Transparency Rules (DTRs) – Following significant reforms to both the UK Listing Rules and the public offers and admissions to trading regime over the last two years, the FCA is turning its attention to a review of the DTRs. The FCA intends to publish a public document on its DTR review in Q3 2026 (it is not stated that this will be a consultation). Market participants should prepare to engage to help shape the direction of travel.
• Sustainability disclosures – The FCA consulted in late January 2026 on replacing TCFD aligned rules for listed companies with disclosures aligned to the UK Sustainability Reporting Standards (UK SRS). The government subsequently published the final UK SRS in February 2026. The FCA has indicated that it intends to publish its final rules and Policy Statement in Autumn 2026. 
  Responses to the FCA consultation were mixed, with some respondents favouring incremental reform. The proposed changes will impact annual report disclosures and internal governance processes for listed companies. The government is expected to consult on the application of UK SRS to non-listed entities as part of its Modernising Corporate Reporting programme.
• UK Listing Rules: investment entities review – As previously announced, the FCA will consider the eligibility criteria for the listing of specific types of investment entities and whether those criteria, particularly regarding risk-spreading, are unduly restrictive. The FCA will also conduct targeted work to assess how the rules, in the context of company law, ensure that boards support strong shareholder rights and engagement, and manage conflicts of interest. The FCA intends to consult on its proposals and to complete the work by the end of Q4 2026.
• Dematerialisation: digitisation of shareholdings – The Dematerialisation Market Action Taskforce (DEMAT) is progressing reforms to remove paper share certificates and move to digitised registers. DEMAT will report by Summer 2026 with a recommended go-live date for Step 1 of its three-step process (i.e. the replacement of paper-based certificated share registers with digitised share registers), together with an implementation plan setting out the actions needed to deliver this. This go-live date is expected to fall before the end of 2027. 
  The changes will affect registrars, corporate actions, shareholder communications and custody chains. The QCA has published a brief guide on what the changes mean for smaller quoted companies and some of the risks under current industry proposals.
• Move to T+1 settlement – From 11 October 2027, the UK will move from T+2 to T+1 settlement for securities trades. While this is primarily a market infrastructure initiative, T+1 will affect execution to settlement timelines, and ECM advisers will need to factor this into transaction planning and execution.
• Decision Procedure and Penalties Manual (DEPP) Consultation - The FCA plans to consult on proposed changes to the DEPP in June 2026. This includes increasing the minimum initial fine for individual market abuse in certain cases and updating the treatment of individuals' deferred income. The FCA continues to emphasise individual accountability in market abuse cases.

At a glance: key dates

The Grid confirms the following milestones, which are expected for the remainder of 2026 to 2027:

• June 2026: DEPP consultation (market abuse penalties)
• Q3 2026: DTR review – FCA public document expected
• Summer 2026: DEMAT report (including recommended Step 1 go live date and implementation plan)
• Autumn 2026: FCA Policy Statement (UK SRS aligned disclosures for listed issuers)
• End 2026: UKLR investment entities review – consultation and completion of the FCA’s work expected
• 11 October 2027: T+1 settlement go-live date.

Further reading

Review the full grid here: Regulatory Initiatives Grid May 2026.