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FCA Unveils Major Overhaul to Boost London Stock Listings

New rules aim to attract global companies but face criticism over reduced investor protections.

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Overview

  • The Financial Conduct Authority has introduced its most significant reforms in three decades to attract more companies to list in London.
  • Key changes include merging premium and standard listings, reducing voting requirements, and allowing enhanced voting rights for founders and investors.
  • The reforms are intended to reverse the trend of companies moving their listings to the US and other markets.
  • Critics argue the changes could lower standards and increase risks for investors, particularly pension funds.
  • The success of the reforms may hinge on additional measures to encourage UK pension fund investments in domestic equities.