Proposed Equity Listing Rule Reforms: PLSA response to FCA consultation

Due to concerns around the long-term decline in number of UK listed companies, which has fallen by 40% since 2008, the Financial Conduct Authority launched a consultation paper in May proposing to replace standard and premium listing share categories with a single listing category for commercial company issuers of equity shares.

This consultation follows extensive engagement on FCA’s listing regime and the recommendations from the UK Listing Review, which showed that premium listing standards are regarded as overly burdensome and are deterring some companies from listing in the UK, even when allowing for the benefits of index inclusion.

After engagement with our members, the PLSA believes that the proposed changes, as currently drafted, would weaken shareholder rights by removing some important checks and balances, in particular for asset owners and retail investors leading to a lack of diverse input and challenge from asset managers to companies.