The UK Financial Conduct Authority (FCA) has set out proposals to make the UK a more attractive place to list companies, following a torrid year when Europe's financial capital lost out to New York on the listing of the UK's biggest tech company in the form of ARM.
Further evidence of the challenge emerged earlier in the week when the Nasdaq market said it had a robust pipeline of UK firms seeking listings.
Following a consultation earlier in 2023, the FCA has now "kept the suggested change to a simplified listing regime with a single listing category, with streamlined eligibility and ongoing requirements, aimed at encouraging a greater range of companies to list in the UK and compete on the global stage."
Other key ideas retained include: moving to a disclosure-based regime, including disclosures for significant transactions while keeping sponsor scrutiny of related party transactions, rather than the current mandatory votes; and shareholder approval for key events such as reverse takeovers and de-listing.
The FCA states: "The proposals could entail an increased possibility of failures, but the changes set out would better reflect the risk appetite the economy needs to achieve growth."
It added that it "now wants to hear from all sides of the market on the detailed proposals before a decision is made on the final rules."
Also flagged is confirmation of a consolidated tape for bonds and a push to publish more real time data alongside this.
Sarah Pritchard, executive director, Markets and International, at the FCA said: "We are working to strengthen the attractiveness of UK capital markets and supporting UK competitiveness and growth. As we do so, it is important that others consider what they in turn can do, to make sure the UK remains an attractive place for companies to raise capital."
"We welcome feedback on our detailed proposals to make sure that we have the balance right as we seek to set the standards for the years and decades ahead."
"The UK is a world leader for bond and derivative markets, and we want to make it better by ensuring investors have access to better, quicker, clearer and cheaper data."
Bim Afolami, economic secretary to the Treasury, said: "The UK is Europe's leading hub for investment but it's a competitive world and we are by no means complacent."
"We want to make the UK the global capital for capital, attracting the brightest and best companies in the world. We are strengthening the UK as a listing destination, taking forward reforms to make it quicker to list, improve disclosure and make our capital markets more efficient and open."
