Investment Companies Daily FCA consultation on new CEIF listing rules to reduce conflicts of interest, BGUK/RECI final results, ICGT April NAV

Research evidence excerpt

Investment Companies Daily FCA consultation on new CEIF listing rules to reduce conflicts of interest, BGUK/RECI final results, ICGT April NAV

Christopher Brown AC Europe Equity Research

(44-20) 7134-4722 26 June 2026 C A Z E N O V E

christopher.brown@jpmorgan.com

• Cost/Benefit analysis: The FCA estimate costs over a ten year period with a PV of

£4.4m, mainly from increased sponsor fair and reasonable confirmations,

compliance costs, director time, and market notifications.

• Timeline: The consultation closes on 14 August 2026 with the rules targeted the

end of 2026; the proposed commencement would be about 4 weeks after

finalisation. Benefits are hard to quantify, but reduce potential harm to investors,

including higher management fees.

The existing rules

• A Board is required to act independently of its investment manager, which in

practice means the Chair must be independent and the majority of the Board. This

does not currently extend to directors nominated by a substantial shareholder who

would like to become the investment manager. Such directors can still be

independent of the potential investment manager.

• Where an investment company enters into any transactions with related parties it

must obtain board approval and secure written confirmation from an FCA-approved

sponsor that the terms are fair and reasonable to all shareholders. A related party

also includes an investment manager in addition to a broader set of persons,

including a substantial shareholder (who holds ≥20% voting rights), persons

exercising significant influence, directors or shadow directors and any of their

associates. Transactions include sales, purchases, financing, and joint ventures. A

transaction is classified by assessing its size relative to that of the listed company