Britain’s financial services regulator Thursday set out final rules for the biggest shake-up in how companies list on the London Stock Exchange in three decades as it seeks to compete harder with New York and the European Union post-Brexit.
The Financial Conduct Authority (FCA) said the rules are largely unchanged from proposals made last December, that divided opinion.
According to Reuters, these rules merge the current two-tier standard and more onerous premium listing segments from July 29, a very short period as firms usually have many months to prepare.
The rules aim to attract a wider range of listings by reducing red tape, and placing the onus on companies to decide what information they should disclose to potential investors.
Reports indicate that the new rules remove a requirement for companies to seek a shareholder vote on significant transactions, with the exception of reverse takeovers and any cancellation of a listing.
Britain’s finance ministry had requested the changes to help boost London’s competitiveness as a global financial centre as Amsterdam, Paris and elsewhere in the European Union – which has already eased its listings rules – compete with London due to Brexit, which took effect from January 2021.
Britain had also failed to persuade UK chip designer Arm Holdings to list in London rather than New York.
