LONDON – Britain’s Financial Conduct Authority (FCA) unveiled final regulations on Thursday for the most significant overhaul of London Stock Exchange listing rules in three decades, aimed at enhancing the city’s appeal post-Brexit and amid global competition.
The reforms, effective from July 29, will consolidate the current dual-tier system of standard and premium listings. This streamlined approach aims to reduce regulatory burdens and empower companies to determine the extent of information disclosed to potential investors. Notably, the requirement for shareholder approval in significant transactions will be lifted, except for reverse takeovers and delistings.
The initiative, endorsed by Britain’s finance ministry to bolster London’s position as a premier financial hub, responds to competitive pressures from European rivals such as Amsterdam and Paris, which have eased their listing rules since Brexit came into effect in 2021. The reforms seek to attract a broader range of companies to list in London, including those with dual or enhanced voting rights intended to support founder control post-listing.
Rachel Reeves, newly appointed as Britain’s finance minister, emphasized the reforms’ role in aligning the UK with global standards and attracting innovative companies. “These new rules represent a significant first step towards reinvigorating our capital markets,” she stated.
The move comes as the London Stock Exchange reports a growing pipeline of potential listings in anticipation of the regulatory changes. Julia Hoggett, CEO of LSE plc, welcomed the reforms, asserting they would better support growth ambitions, expand investment opportunities for UK investors, and bolster the national economy.
While critics, including shareholder groups, have raised concerns about potential weakening of standards with reduced regulatory oversight, the FCA maintains that increased corporate disclosures will mitigate risks associated with the reforms.
Overall, the overhaul marks a pivotal moment in London’s financial landscape, aiming to enhance competitiveness and attractiveness for global companies seeking listings.
