The head of the London Stock Exchange has declared a sweeping set of changes to UK capital markets as the most significant seen "in a generation," with Chancellor Rachel Reeves stating they are helping to revitalise the City of London.
Landmark Reforms for a Market Revival
Dame Julia Hoggett, the chief executive of the London Stock Exchange Group, made the comments at an event intended to celebrate recent successes on London's markets. The Chancellor had been scheduled to speak but withdrew following renewed tariff threats from US President Donald Trump concerning Greenland.
Dame Julia stated that new regulations from the Financial Conduct Authority (FCA) are delivering the "greatest set of primary markets reforms in a generation." The core aim of these measures is to lower costs and accelerate processes for businesses seeking to raise capital and secure investment within the UK.
Chancellor Reeves, in her prepared remarks, was set to argue that cutting red tape for companies listing shares is "reinvigorating" the City, following early indicators of a recovery. "Two years ago, some said the City's best days were behind it. They were wrong," her speech noted.
Empowering Retail Investors and Streamlining Listings
A central theme of the reforms is re-engaging individual investors. Dame Julia highlighted that retail investors have been a "critical linchpin" but have become increasingly "disenfranchised" over the past two decades. The reforms seek to reverse this trend.
Key changes include a major simplification of prospectuses. Companies already listed in London will, in most cases, no longer need to publish lengthy prospectuses to issue more shares and raise funds. Furthermore, the time between publishing initial documents and completing an Initial Public Offering (IPO) on the LSE will be halved.
A notable innovation is the launch of "access bonds," made possible by rule changes allowing bonds to be issued in smaller denominations. Dame Julia emphasised these could be issued for "even as low as one pound," dramatically improving accessibility for everyday investors.
Building on a Resurgent FTSE and New Listings
The regulatory push follows a tangible uptick in market activity. The LSE enjoyed a late surge in listing activity towards the end of 2025, including the high-profile flotations of Princes Group and Shawbrook Bank. This sparked optimism after a prolonged drought and a series of departures by UK-listed firms to overseas rivals.
This momentum aligns with a record-breaking performance by the FTSE 100 index, which tracks the UK's largest listed companies. Earlier this month, it surpassed the 10,000-point milestone for the first time in its history, following a standout year where it rose by 21.5%—its strongest annual gain since 2009.
Chancellor Reeves linked this performance directly to the broader reform agenda, stating, "As the FTSE 100 reaches record highs and global firms once again choose London, we are seeing the first signs of a new golden age for the City." The government is now working on further reforms designed to build a stronger retail investment culture in Britain, which currently lags behind nations like the United States.
