Team S on Newnex: The UK's regulators are on the brink of…

The UK's regulators are on the brink of implementing the most…

Team S · 2024-06-17T06:41:48.000Z

The UK's regulators are on the brink of implementing the most significant changes to the listing rules in over 30 years. These changes aim to rejuvenate the City by making it a more attractive hub for raising equity capital. The proposed rules include relaxing restrictions on dual-class shares, eliminating the requirement for a three-year financial track record, and removing the need for shareholder votes on substantial and related-party transactions. This move by the Financial Conduct Authority (FCA) is met with mixed reactions. While it claims broad support for the overhaul, some fund managers, who control vast amounts of UK assets, are alarmed. They argue that lowering standards might harm the reputation for high-quality governance that makes London appealing to institutional investors. Critics include Norway’s $1.7 trillion sovereign wealth fund, a group of 10 UK pension funds led by Railpen, and Britain’s Local Authority Pension Fund Forum (LAPFF). They worry that a “race to the bottom” could backfire. https://www.bloomberg.com/opinion/articles/2024-06-17/capital-markets-london-s-race-to-the-bottom-is-a-big-gamble?srnd=homepage-uk