London’s new stock market reforms are likely to make the City more attractive after years of falling short against global competitors, according to a senior director of one of the world’s largest independent financial advisory organizations.
The bullish analysis from James Green, regional director of deVere Group with global experience across 18 regulated financial entities, comes as the United Kingdom (UK) unveils sweeping changes to capital markets rules aimed at reversing a prolonged slump in listings and fundraising.
The London Stock Exchange (LSE) has endured a historic drought in new listings. The exchange saw 23 IPOs (Initial Public Offerings) in 2025, raising £2.1 billion, according to data from EY Parthenon. While this represented a 170 per cent year on year increase from 2024, which saw just 18 listings raising £777.7 million, the figures remain well below historical levels. In the first half of 2025, IPO fundraising hit a three decade low with just £160 million raised.
The number of publicly traded companies in London has fallen by around 25 per cent over the past decade, highlighting the erosion of the UK’s capital markets ecosystem.
Reforms introduced on January 19, 2026 aim to simplify capital raising, reduce disclosure burdens, and accelerate deal timelines in a bid to make London more competitive with New York and other global exchanges.
Green said the reforms mark a decisive shift in tone and policy that investors and issuers should take seriously. He noted that for several years, companies have cited lower valuations, thinner liquidity, and heavier regulation as reasons to look elsewhere. The direction of travel has changed, he argued.
The new Public Offers and Admissions to Trading regime, which replaces European Union (EU) era prospectus rules, is designed to simplify fundraising for listed companies and speed up transactions. The Financial Conduct Authority’s (FCA) new UK prospectus rules took effect on January 19, 2026, together with the Public Offers and Admissions to Trading Regulations 2024.
The reforms greatly reduce the need for a prospectus, therefore simplifying the process for and reducing the cost of capital raisings. They also encourage retail participation and aim to improve London’s competitiveness as a listing venue.
Under the new rules, the threshold above which an issuer must publish a prospectus for a further issue of securities has been raised from 20 per cent to 75 per cent of the company’s issued share capital in a 12 month period. For equity securities issued by closed ended investment funds, the threshold rises to 100 per cent.
The reforms also reduce the minimum prospectus availability period for IPOs from six working days to three working days, helping accelerate deal execution. Regulators estimate the changes could save companies tens of millions of pounds annually.
Green said the reforms arrive at a moment when global competition for listings is intensifying and private capital markets are reaching saturation. He explained that private markets have grown dramatically, but many companies are reaching a scale where public markets make sense. It’s refreshing that London wants to be in the conversation again, he said.
The deVere executive added that the UK’s renewed push to anchor high growth companies domestically, particularly in AI (Artificial Intelligence) and tech, life sciences, and clean energy, could reinforce the momentum.
Governments are increasingly strategic about where companies list, Green noted. Supporting domestic champions and keeping innovation ecosystems local is part of economic strategy, and capital markets policy is now a tool of industrial policy.
While cautioning against unrealistic expectations, Green believes the reforms mark a turning point in sentiment. He noted that capital markets typically recover in phases, with confidence returning first, pipelines rebuilding next, and execution following.
Global macro conditions, interest rates, and geopolitical uncertainty will still influence listing decisions, but policy alignment is a necessary precondition for recovery, he said. Regulation alone does not create IPOs, but misaligned regulation can prevent them. London has removed some structural barriers, and that changes the calculus.
Green also pointed to valuation gaps between London and US markets as a critical factor. Companies chase capital, liquidity, and valuation. Narrowing the valuation discount is essential, he said.
The reforms have been further reinforced by measures announced in the Chancellor’s Autumn Budget, including the introduction of a three year stamp duty exemption for newly listed companies on the London Stock Exchange starting November 27, 2025. This is designed to help strengthen the UK’s competitive position as a global listing venue.
Julia Hoggett, chief executive of the LSE, welcomed the reforms as the greatest set of primary markets reforms in a generation. Chancellor Rachel Reeves described the changes as reinvigorating the spirit of openness in the London markets.
Looking ahead, the pipeline of prospective IPOs remains strong, supporting expectations of renewed activity in the first half of 2026. Potential London listings include Norwegian software company Visma, valued at €19 billion in 2023, and fintech firms such as ClearScore, Zilch, Monzo Bank, and Starling Bank.
Green concluded that London is positioning itself for a new cycle of listings, capital raising, and market depth. The trajectory looks constructive, he said.
