Britain takes further step towards London listings overhaul

Britain’s stock market rules could be radically simplified as part of efforts to lure major company listings to London, under detailed plans unveiled by the country’s financial watchdog on Tuesday.

The Financial Conduct Authority (FCA) has proposed replacing Britain’s existing ‘premium’ and ‘standard’ listing segments with a single category, as part of a package of reforms designed to simplify the country’s listings rulebook.

“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 watchdog began consulting on potential changes to its listing regime in March, and the more detailed proposals will undergo a further round of consultation ending on June 28.

The FCA said a single equity category would remove eligibility requirements that deter newer companies, be more permissive on dual-class share structures, and remove mandatory shareholder votes on transactions such as acquisitions.

While the watchdog said it was committed to maintaining high standards, some experts expressed concerns at the reform push.

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