UK regulator suggests simpler listing rule for London to attract more startups

BRITAIN’S twin-track company listing regime could be simplified into a single entry point to the London Stock Exchange to attract more startups, the Financial Conduct Authority (FCA) said on Thursday (May 26).

Britain wants to bolster London’s attractiveness as a global location for listings as it continues to trail New York in bringing tech companies to the market, and faces added competition from Amsterdam since Brexit.

The FCA said in a discussion paper on Thursday that 1 suggestion was companies wishing to list in London would no longer have to choose between 2 different options, standard and premium, with their different branding and standards.

“Instead, all listed companies would need to meet 1 set of criteria and could then choose to opt into a further set of obligations,” the FCA said in a statement.

“Companies and their shareholders would decide for themselves whether these additional obligations were right for them.”

The discussion paper takes a broader look at Britain’s listings regime following changes to current rules.

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In July 2021, the FCA eased rules for so-called special purpose acquisition companies (SPACs) to attract more listings to London following a surge in activity in New York and Amsterdam of these “blank cheque” companies.

In December, the watchdog said it would allow a targeted form of dual class share structures, a feature of the New York market which has attracted many tech company listings. REUTERS