© Reuters. FILE PHOTO: Skyscrapers in the City of London’s financial district are seen in London, Britain September 14, 2020. REUTERS/Hannah McKay
By Huw Jones
LONDON (Reuters) – Britain’s dual-track company listing regime could be simplified into a single entry point to the London Stock Exchange to attract more startups, the Financial Conduct Authority (FCA) said on Thursday.
Britain wants to bolster London’s attractiveness as a global location for listings as it continues to follow New York in bringing tech companies to market and faces increased competition from Amsterdam since Brexit.
The FCA said in a working paper on Thursday that one suggestion was that companies wanting to register in London would no longer have to choose between two different options, standard and premium, with their different branding and standards.
“Instead, all listed companies would have to meet one set of criteria and then could choose to join another set of requirements,” the FCA said in a statement.
“Companies and their shareholders would decide for themselves whether these additional obligations were right for them.”
The discussion paper takes a broader look at the UK registration regime following changes to the current rules.
In July 2021, the FCA eased rules for so-called special purpose acquisition companies (SPACs) to attract more listings in London following increased activity in New York and Amsterdam. of these “blank check” companies.
In December, the watchdog said it would allow a targeted form of dual-class share structures, a feature of the New York market that has attracted many tech company listings.