FCA: Changes to listing rules will make UK 'market of choice'

investmentweek.co.uk:

Sarah Pritchard, executive director, markets and international at the FCA

Sarah Pritchard, the FCA's executive director of markets and international, told an event in London yesterday (25 September) the proposed changes will «streamline the listings rules» to help «attract a wider range of companies, encourage competition and improve choice for investors».

The FCA will «explain and confirm» changes to the listing rules «before the end of the year, and will then seek to implement speedily», Pritchard said. 

UK listings framework continues to dampen IPO appeal

While Britain has been Europe's biggest financial hub for many years, listings in the UK have reduced by 40% since 2008, according to The UK Listing Review. In a high profile loss, UK chip manufacturer Arm decided this year to shun London for New York and a listing on the Nasdaq.

The listings regime in the UK has been seen by some issuers and advisers as too complicated and onerous.

Under planned changes the FCA would replace its existing ‘standard' and ‘premium' listing segments with a single category for equity shares in commercial companies.

A single equity category would remove eligibility requirements that can deter early-stage companies, be more permissive on dual class share structures and remove mandatory shareholder votes on transactions, such as acquisitions, to reduce frictions to companies pursuing their business strategies.

Right now is a «significant moment in time», in which this set of regulatory changes will «inevitably set the rules for the next few decades», Pritchard said, adding the FCA wants to achieve «consensus as much as possible». 

However, she added «consensus does not necessarily mean compromise».

«It means achieving the right outcome