By Huw Jones
LONDON (Reuters) -Britain’s twin-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 trail New York in bringing tech companies to the market, and faces added competition from Amsterdam since Brexit.
The FCA said in a discussion paper on Thursday that one suggestion was companies wishing to list 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 need to meet one set of criteria and could then choose to opt into a further set of obligations,” 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 Britain’s listings regime following changes to current rules.
In July 2021, the FCA eased rules for so-called special purpose acquisition companies (SPACs) to attract more listings to London following a surge in 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 which has attracted many tech company listings.
(Reporting by Huw JonesEditing by Sinead Cruise and Mark Potter)
