Britain launches review to keep London listings competitive

According to Reuters, Britain launches review to keep London listings competitive.

LONDON (Reuters) – The UK Treasury said on Thursday that a former European Union financial services commissioner will review listing rules to make London more attractive to technology companies.

Jonathan Hill will look at free floats and two-tier equity structures, the Treasury said, while Britain is reviewing its rules to ensure London can compete with New York and Asia as it loses unfettered access to the EU. most important customer.

Companies listed on the London Stock Exchange must currently have a minimum of 25% of their shares available to trade, but some tech entrepreneurs would like to retain control of their companies and have a lower free float.

Dual-class equity structures, common in the United States, but limited for top UK companies, give some shares more voting rights than others.

Shareholder groups are against two-class shares, saying that “one share, one vote” improves corporate governance standards and protects minority shareholders.

“More dynamic stock markets will strengthen the UK’s position as a world-leading financial center and drive growth and innovation across the economy,” UK Treasury Secretary Rishi Sunak said in a statement.

Hill’s review will make recommendations to the government and the Financial Conduct Authority early next year.

He will also look at the requirements for companies preparing a prospectus for investors, reviewing existing secondary listing rules and rules requiring companies to provide a “track record” of their financial performance.

Reporting by Huw Jones; Editing by Alexander Smith

© Thomson Reuters

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