British Regulator Easing Rules to Stem Company Outflow From UK Stock Markets

The FCA is looking into replacing the current system of “premium” and “standard” listing categories with a single one as part of a reform package designed to simplify the country’s listings rulebook. Current regulations have been accused of being “too complicated and onerous,” but the FCA said that decisions by firms to list are based on other factors such as taxation and investment opportunities. However, businesses which choose list shares on any of the FTSE indexes, including some of the world’s largest firms, must hold a premium listing in order to comply with the UK’s regulation standards and pay substantial costs. It also suggested removing the requirement for shareholders to have a vote on transactions such as acquisitions, which will reduce barriers for companies pursuing their business strategies. “We want to encourage more companies to list and grow in the UK, versus other highly competitive international markets,” said FCA chief executive Nikhil Rathi. The British watchdog began reviewing potential changes to its listing rules in March, with more detailed proposals undergoing a further round of consultations through June 28. The FCA said that a single equity category would ease eligibility requirements that deter new startups and make things more permissive on dual-class share structures.