FCA publishes multi-firm review findings on share buybacks in UK listed equities
The Financial Conduct Authority (FCA) has published the findings of its multi-firm review into share buybacks conducted by UK listed equity issuers. The review focused on how banks structure, market and execute buybacks, particularly for FTSE 350 issuers and assessed the outcomes delivered to issuers and the conduct of banks involved. The FCA analysed 165 buybacks worth £40bn executed by seven banks over an 18-month period, alongside engagement with issuers, investors and trade associations.The review found that buybacks have become a more prominent method of capital return, especially post coronavirus (COVID-19), and that banks generally delivered fair outcomes. However, the FCA identified areas for improvement in how banks educate issuers and disclose product features and potential outcomes. The FCA will consider feedback on UK Listing Rules and Market Abuse Regulation (MAR) in future regulatory reviews.