London Daily

Focus on the big picture.
Thursday, Aug 28, 2025

FCA launches consultation paper to shake up stock exchange listing rules

FCA launches consultation paper to shake up stock exchange listing rules

The number of companies listing in the UK has dropped 40% since 2008 despite government and regulator efforts to lure businesses.
The UK financial watchdog will announce plans to change the rules on bringing companies into public ownership after a series of high profile businesses snubbed the London Stock Exchange.

The Financial Conduct Authority (FCA) will on Wednesday publish proposed changes to rules on listing companies on the London Stock Exchange.

It hopes to make regulation more effective, easier to understand and more competitive after the number of companies listing in the UK has fallen by 40% since 2008, according to The UK Listing Review, undertaken by Lord Hill.

The regulator says the current rules are "seen by some" as "too complicated and onerous". Politicians and regulators hope that increased listing in the UK will help economic growth.

Despite three prime ministers lobbying for it to list in London, major Cambridge-based microchip designer Arm decided to have its initial public offering (IPO) of shares on the New York Stock Exchange. Its owners viewed floating in New York the best way to recoup their $32bn (£26.7bn) investment in the company.

Some in Arm's parent company, Softbank, and the government, were critical of FCA and blamed "onerous" rules for the decision to go with New York.

The world's biggest supplier of building materials, CRH, also announced in March it was moving its primary listing to New York.

Concerns about companies exiting London for New York were reinforced when Paddy Power and Betfair owner, Flutter, announced it's to pursue a secondary listing across the Atlantic.

The FCA's proposed rules are designed to help founders retain control in their companies by enabling them to hold shares with more voting rights.

The changes in the consultation paper, if enacted, would remove the two classes of listings and create a single category. Currently there are standard and premium listing segments.

The FCA says this move would "remove eligibility requirements that can deter early-stage companies, be more permissive on dual class share structures, and remove mandatory shareholder votes on transactions such as acquisitions".

Removing some mandatory votes would "reduce frictions to companies pursuing their business strategies", the watchdog says.

Concern, however, has been raised about the impact of the changes on investor rights,

"We strongly support the principles behind listing rule reform to make the UK more competitive, but eroding shareholder rights risks undermining market standards, and this is not the right answer," the chief executive of a UK investment platform said.

"Dual-class structures, which come with differential voting rights, erode shareholder rights," Richard Wilson of Interactive Investor, said.

"Distorted rights distort governance and accountability. When company founders seek external capital from shareholders, as equity owners they must respect their shareholder rights. One share, one vote is a bedrock of shareholder democracy and we are concerned to see that the spectre of dual share classes, which we have actively lobbied against, still looms large."

Stakeholders will have eight weeks to consider the proposals and issue responses. Once responses from interested parties are received the FCA will create a policy statement and publish it in late 2023 or early 2024.

Work on reforming rules has been ongoing since Brexit and Lord Hill began The UK Listing Review in 2020.

Responding to the consultation paper Lord Hill said "I very much welcome these proposals from the FCA, which build on the direction of travel we tried to set out in our listing review.

"If implemented, London would be able to stand toe to toe with our international competitors."

But factors beyond listing rules will influence where companies list, the FCA chief executive said.

"While regulation plays an important part, a company's decision on whether, and where to list, is influenced by many factors so substantive change will require a concerted effort from government and industry as well."

"Our proposed reforms would significantly rebalance the burden of regulation to the benefit of listed companies and investors who are willing to set their own risk appetite and terms of engagement," Nikhil Rathi said.
Newsletter

Related Articles

0:00
0:00
Close
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
A new faith called Robotheism claims artificial intelligence isn’t just smart but actually God itself
Deputy Prime Minister Angela Rayner Purchases Third Property Amid Housing Tax Reforms Debate
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Italian Facebook Group Sharing Intimate Images Without Consent Shut Down Amid Police Investigation
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
Sam Nicoresti becomes first transgender comedian to win Edinburgh Comedy Award
Builders uncover historic human remains in Lancashire house renovation
Australia Wants to Tax Your Empty Bedrooms
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
FBI Investigates John Bolton Over Classified Documents in High-Profile Raids
Report reveals OpenAI pitched national ChatGPT Plus subscription to UK ministers
Labour set to freeze income tax thresholds in long-term 'stealth' tax raid
Coca‑Cola explores sale of Costa coffee chain
Trial hears dog walker was chased and fatally stabbed by trio
Restaurateur resigns from government hospitality council over tax criticism
Spanish City funfair shut after serious ride injury
Suspected arson at Ilford restaurant leaves three in critical condition
Tottenham beat Manchester City to go top of Premier League
Bank holiday heatwave to hit 30°C before remnants of Hurricane Erin arrive
UK to deploy immigration advisers to West Africa to block fake visas
×