FCA's Rathi pushes for radical overhaul of stock exchange rules
The proposed rules come following the new secondary objective of the FCA “to support international competitiveness and growth over the medium to long term”.
During the annual Mansion House dinner on Monday (16 October), Rathi argued in favour of plans to merge the ‘premium' and ‘standard' segments of the bourse, in a bid to boost the UK's attractiveness for listings.
«We see good support for merging premium and standard listing segments into a new, single segment, with no cliff edge and generous transition arrangements,» he said.
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Other plans proposed by the FCA in May this year included scrapping the requirement for a shareholder vote and FCA approval for significant M&A deals, unless it is a reverse takeover.
«This disadvantage faced by UK-listed companies competing in global M&A is real and needs to be fixed,» Rathi added.
The proposed rules come following the new secondary objective of the FCA «to support international competitiveness and growth over the medium to long term».
The changes have stoked fears of reduced shareholder power, with Rathi noting that the move would also require a «laser focus on the rigour of disclosure».
«We need acceptance that with more risk in the system, we will not, nor should we try to, stop every failure,» he said.
However, the CEO emphasised that the changes were «not a done deal», revealing that a consultation on detailed rules and a cost benefit analysis would be «coming shortly», with final rules expected in the first half of 2024.
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In his speech, Rathi also emphasised the need for the regulator to be internationally
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