Britain’s markets watchdog on Thursday paved the way for the biggest shake-up in three decades of rules for companies listing on the London Stock Exchange as it seeks to catch up with New York and the European Union post-Brexit. The regime, which aims to attract a wider range of listings by reducing red tape, is backed by the country’s new Labour government as it focuses on reviving growth and investment. “These new rules represent a significant first step towards reinvigorating our capital markets, bringing the UK in line with international counterparts and ensuring we attract the most innovative companies to list here,” said Rachel Reeves, Britain’s finance minister in the Labour government elected last week.
The rules will give company founders more power over decision-making and disclosures to investors. They also remove a requirement for companies to seek a shareholder vote on significant transactions, with the exception of reverse takeovers and a listing cancellation. Britain’s finance ministry under the previous government had requested the changes to help London to compete more effectively with Amsterdam, Paris and elsewhere in the European Union – which has already eased its listings rules.
London has already lost some high-profile listings to other markets, including UK chip designer Arm Holdings, which chose to list in New York. Fast fashion retailer Shein meanwhile has begun the process for a London listing. The Financial Conduct Authority (FCA) said.