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The U.K.’s Financial Conduct Authority Thursday In an effort to stimulate growth, the government has introduced new rules for stock market listings.

The new rules — which come into effect from July 29 — will ensure the U.K.’s listing system is more in line with those in other markets, and will make it simpler and more streamlined, the FCA said in a statement.

The FCA: The FCA has announced that these measures are the most significant changes to the listing system in more than 30 years. “They aim to support a wider range of companies to issue their shares on a UK exchange, increasing opportunities for investors,” The regulator was added.

One The removal of the premium and standard listing segments is a key change. Instead There will only be one category for listing equity shares, and it has been called ‘commercial companies’.

This “should very much simplify the process,” Sarah PritchardCNBC’s “Squawk Box Europe” On, Thursday.

PreviouslyThe standard listing segment, however, was not fully understood.

“We had overwhelming feedback and support from all parts of the market on the need to simplify and move to one straightforward category,” Pritchard explained.

Premium Listings previously had extra requirements in comparison to standard listings. Some Some of these changes will now be applied to all listings while others were scrapped.  

“The new rules remove the need for votes on significant or related party transactions and offer flexibility around enhanced voting rights. Shareholder approval for key events, like reverse takeovers and decisions to take the company’s shares off an exchange, is still required,” FCA said.

Some The rules governing eligibility for listing will also be changed. For example, the requirement that companies provide a track record of their revenues is being removed.

The The rules were a positive step for the U.K. IPO Market, but they could have been taken further. Chris HaynesBecome a corporate partner in a law firm Gibson Dunn CNBC received an email from CNBC confirming the comments.

“The move to a single listing category with streamlined eligibility criteria, and to disclosure-based continuing obligations, is one of a number of important initiatives which, together, should lead to more UK IPO activity,” He said.

“In my view the FCA could have created further flexibility in some areas, such as in relation to dual class share structures, however overall it’s a good outcome,” Haynes added.

The New rules have been introduced at a period when the European The U.K. listings market in particular has become a major player. slumped. Major Recently, tech companies have favored the U.S. as a listing destination. British chip designer Arm Choose the best listing on New York’s Nasdaq Last year.

Euronext reported The platform listed 64 equity shares on its platform in the past year, which is a significant decrease. from It is expected to welcome 83 new listings in 2022.

The In response to the U.K.’s 2021 World Cup, new rules have been formulated. Listing Review The report showed that there were fewer listed companies in Britain than in 2008. Only 5% of all global IPOs from 2015 to 2020 occurred in the U.K.

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