The Financial Conduct Authority (FCA) is trying to “simplify” the UK’s IPO rules to encourage more London tech listings.
The new proposals would remove the option for a standard or premium listing and replace it with a process only for commercial company shares.
It comes just days after Cambridge chip company Arm formally applied for a listing in New York, in a blow to the UK’s public tech markets.
“Our proposed reforms would significantly rebalance the regulatory burden to the benefit of listed companies and investors willing to set their own risk appetite and terms of engagement,” said FCA Chief Executive Nikhil Rathi.
It is hoped that the new structure will make London’s markets more popular for companies both at home and abroad. Other proposals being considered include removing the licensing requirements, exploring dual class share structures and removing the need for shareholder votes in transactions such as acquisitions.
The country’s IPO has fallen by 40% since 2008, according to the UK Listing Review. Alongside the FCA’s IPO changes, the rules for secondary markets in the UK will also be under scrutiny.
“While regulation plays an important role, many factors influence a company’s decision on whether and where to list, so making significant changes also requires a concerted effort from government and industry,” Rathi added.
The FCA had previously considered relaxing listing requirements to persuade Arm to go public in London. Rathi has previously defended the regulator’s role in Arm’s British snub.
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