UK's FCA proposes new IPO process amid competition concern

London

THE regulator that helps oversee UK banks and brokerages proposed changing the process for initial public offerings to reduce favouritism and ensure that investors are better informed.

Analysts at firms not underwriting the IPO should have more access to the company's management, and the timing of publication of an approved prospectus should be changed to provide more information to investors, the Financial Conduct Authority (FCA) said in a report on Wednesday. The investment banks handling the deals often allocate shares to favoured customers from their other businesses, which may not be in the issuer's best interests and may shut out smaller investors, the FCA said.