London Stock Exchange Welcomes Secondary Listing Plan From FSA

The new policy proposed by the FSA to simplify the listing process for investment companies has been welcomed by the London Stock Exchange. The FSA's statement also seeks a "secondary listing" in London for overseas domiciled investment entities, enabling another

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The new policy proposed by the FSA to simplify the listing process for investment companies has been welcomed by the London Stock Exchange. The FSA’s statement also seeks a “secondary listing” in London for overseas domiciled investment entities, enabling another route for overseas and offshore funds to reach London markets.

“Simplifying the listing rules for investment entities is an important step and will bring the process into line with the principles-based approach that prevails in the UK,” says Paul Haddock, product manager of investment entities at the London Stock Exchange. “In addition, allowing companies to follow the secondary listing route to market will provide access to London’s capital for many new types of funds. The proposals look set to make London a very attractive venue for property investment companies, funds of hedge funds and potentially private equity vehicles, giving investors access to alternative investment structures backed by the transparency and liquidity of a London Stock Exchange listing.”

“The ability of non-UK investment companies to obtain a secondary listing will undoubtedly create considerable interest in London listings among investment companies and managers who may currently be looking elsewhere,” says Jonathan Baird of law firm Freshfields Bruckhaus Deringer.

The new rules will be consistent with the government’s UK REITs eligibility criteria, says the FSA. The FSA will consider waving current listing requirement for property investment companies until the total implementation of the new listings.

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