The Financial Conduct Authority (FCA) has finally come up with initial guidance on the assessment of cannabis-related companies that want to float on the Main Market. The full guidance will follow in due course.
The UK Listing Authority, which is under the jurisdiction of the FCA, has to approve prospectuses for flotations. The guidance makes it clear that no companies involved in recreational cannabis will be allowed to float in London.
Medicinal cannabis was legalised in 2018 but there has been uncertainty about the appropriateness of companies involved in the sector.
The main problem is that proceeds from overseas medicinal cannabis business may be deemed to be criminal property under the Proceeds of Crime Act 2002. This is still the case if the company has a licence issued by ...