The London Stock Exchange (LSE) has described the Financial Services Authority’s (FSA) discussion paper on the structure of the listing regime as a timely opportunity to bring the Listing Rules up to date with existing market practice, and for the FSA to set out more clearly its role with respect to each Main Market segment.
“This discussion paper is an important opportunity for the FSA to update the terminology and labels used to describe the different listing routes available to companies in London. In a growing market it is crucial for investors to be able to identify the regulatory standards that apply, as well as who is applying them. The market has always valued the fact that there are different routes to listing on the Main Market. We are pleased to see FSA recognise the benefits that this choice brings, fitting the needs of investors with different risk appetites, and playing a key part in London’s success in attracting international companies to our markets,” says Adam Kinsley, director of regulation, LSE.
In particular, the Exchange supports the FSA’s proposal to review the requirements for non-UK companies choosing a Primary Listing in London and align them more closely with the criteria applied by FTSE for inclusion in the FTSE UK Index Series including a Combined Code – it is proposed that international companies seeking a Primary Listing be required to abide by the same ‘comply or explain’ requirements as UK companies and Pre-emption rights – it is proposed that the rules for a Primary Listing require international companies to adopt an equivalent pre-emption rights regime to that followed by UK companies under UK company law.
The Exchange will respond to the discussion paper in full in due course.