Capital Markets Update: October 2026

Welcome to Capital Markets Update, the monthly briefing from the Corporate Group at Walker Morris rounding up the previous month’s regulatory developments within the equity capital markets and looking ahead to future developments.

September’s news

Walker Morris expands its Equity Capital Markets practice

Walker Morris has added to its Equity Capital Markets team with the appointment of DLA Piper’s former Co-Head of UK Equity Capital Markets, Martin Penn. Martin brings more than 20 years of experience to lead and expand a growing portfolio of mid-market public company advisory work. Martin’s clients include listed companies, investors and investment banks headquartered in the UK and around the world, across a range of sectors, particularly life sciences and technology. In addition to initial public offerings, secondary equity capital offerings, share buybacks and tender offers, Martin brings extensive experience of advising companies seeking to raise funds from investors to finance M&A activity and various matters under the UK Listing Rules.

Government consults on reforming the UK corporate reporting framework

On 7 September 2026, the Department for Business, Innovation, Science and Trade published Consultation: Modernising corporate reporting, outlining plans to simplify financial and non-financial reporting and create a more proportionate framework. Described as a once in a generation reset of the corporate reporting regime, the consultation seeks views on wide-ranging reforms, including changes to company categories, thresholds and exemptions under Part 15 of the Companies Act 2006; the value of non-financial and corporate governance reporting by private companies; and a streamlined legislative framework supported by four accounting standards. It also proposes replacing the existing distribution and capital maintenance rules with a solvency-based test for lawful dividends, removing the annual advisory shareholder vote on the remuneration report, clarifying the law on virtual AGMs and making electronic shareholder communications the default. The consultation closes on 30 November 2026.

FRC updates its regulatory approach framework

On 3 September 2026, the Financial Reporting Council (FRC) published an updated version of its ‘Our Approach to Regulation’ framework, setting out how it will support economic growth while maintaining confidence in the UK’s corporate governance, corporate reporting, audit and actuarial sectors. The framework focuses on encouraging innovation, applying proportionate and principles-based regulation, aligning standard-setting, supervision and enforcement, and using stakeholder engagement and data to guide regulatory decisions. It also explains how the FRC applies the Regulators’ Code in carrying out its functions.

FRC reviews corporate reporting in 2025/26

On 29 September 2026, the FRC published its Annual Review of Corporate Reporting 2025/26, summarising its monitoring of UK corporate reporting for the year ended 31 March 2026. Overall reporting quality among the FTSE 350 companies reviewed remained high, with some evidence that the quality gap between FTSE 350 and other companies had narrowed. The review highlights areas for improvement and examples of good practice, sets out the FRC’s key expectations for the next reporting season, and urges companies to prepare for major changes. These include Provision 29 of the UK Corporate Governance Code 2024 on material controls, which applies for financial years beginning on or after 1 January 2026, revisions to FRS 102 and the implementation of IFRS 18 Presentation and Disclosure in Financial Statements.

FRC issues guidance on cyber risk reporting under Provision 29 of the UK Corporate Governance Code

On 23 September 2026, the FRC published a ‘mythbuster’ to help companies report on cyber security, particularly when making the board declaration required by Provision 29 of the UK Corporate Governance Code. Provision 29 was revised in 2024 and requires annual reports to include a formal board declaration on the effectiveness of the company’s material controls. The guidance addresses concerns that cyber security reporting could reveal commercially sensitive information or compromise security, clarifies the FRC’s expectations and signposts relevant government guidance on cyber governance.

Changes to the strike-off process

On 1 September 2026, Companies House announced that, from 1 December 2026, objections to striking off a limited company must be submitted through its online objection service. Email objections will no longer be accepted. Users will need a Companies House account and must provide the company name and number, together with supporting documents. Companies House says the change is part of its wider digital transformation programme and is intended to make the process more efficient and secure.

LSE publishes 2027 dividend timetable

On 4 September 2026, the London Stock Exchange (LSE) published its Dividend Procedure Timetable 2027. Published annually, the timetable helps companies with shares listed on the LSE’s Main Market or admitted to trading on AIM plan their interim and final dividend programmes. It specifies the 2027 ex-dividend dates, together with the related record dates and latest announcement dates.

FCA adjusts listing transaction turnaround times for Christmas and New Year 2026/27

On 9 September 2026, the Financial Conduct Authority (FCA) published revised Christmas and New Year turnaround times for document reviews, guidance cases and listing applications.

Adopting tokenisation in wholesale financial markets

On 14 September 2026, the FCA and Bank of England published a feedback statement on the safe adoption of tokenisation in UK wholesale financial markets. Respondents to the May 2026 call for input strongly supported tokenisation, particularly for post-trade activities. The regulators will publish a joint roadmap, including target dates, later in 2026.

Looking ahead to October 2026

2 October – closing date for comments on miscellaneous amendments to the Takeover Code proposed in PCP 2026/1.

28 October – Chancellor John Healey will deliver his first budget to Parliament.