LONDON, July 11 - 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 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. The Financial Conduct Authority said the rules, opens new tab are largely in line with proposals made last December. These had a mixed reception, with backers saying the plans simply brought London in line with rival centres, while critics said they would dilute investor rights.
The rules also merge the current two-tier standard and more onerous premium listing segments from July 29, a very short period as companies usually have many months to prepare.Under the new system, company founders or directors can have dual or enhanced voting rights for an unlimited period, a step that aims to attract more growth companies whose founders want to retain control after a listing.
Julia Hoggett, CEO of LSE plc, said the change will ensure that UK-listed companies benefit from"a listing regime that better supports their growth ambitions, increases investment opportunities for UK investors and supports the UK economy". Scott McCubbin, UKI IPO leader at consultants EY, said the new balance between investor protection and market attractiveness will need to be carefully monitored.