Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
FCA unveils biggest overhaul of listing rules in three decades
(Sharecast News) - The financial regulator has shaken up UK listing rules, it was confirmed on Thursday, as it looks to encourage more companies to join the London Stock Exchange. The Financial Conduct Authority said the changes, the biggest for more than three decades, would simplify the regime as well as better aligning the UK's rules with international standards.
In particular, it is removing the need for votes on significant or related party transactions, and will offer flexibility around enhanced voting rights. Shareholder approval for key events is still required, however, including delisting or reverse takeovers.
There will also be just one category and streamlined eligibility for companies seeking to list shares in the UK.
Sarah Pritchard, executive director, markets and international, at the FCA, said: "A thriving capital is vital in delivering investment to growing companies plus returns and choice to investors. This is why we're making it more straight forward for those seeking to list in the UK."
Rachel Reeves, chancellor, said: "These new rules represent a significant first step towards reinvigorating our capital markets, bringing the UK in line with international counterparts and ensuring we attract the most innovative companies to list here."
The London market has struggled in recent years to compete with rival stock exchanges, which boast deeper capital and higher valuations. As well as failing to attract high-growth start-ups, it has also lost established British companies.
Last year, Cambridge-based chip designer Arm shunned the City in favour of Wall Street, while Flutter shareholders backed a proposal to move its primary listing to New York from London earlier this year.
Building materials specialist CRH has also switched its main listing stateside, while tourist giant Tui abandoned its long-held dual listing earlier this year in favour of a sole listing in Germany.
However, some analysts sounded a note of caution about the regime change.
Dan Coatsworth, investment analyst at AJ Bell, said: "The government is clearly desperate to bolster UK listings as part of efforts to revitalise the City.
"However, the plans come with some serious potential negatives.
"The reforms risk diluting the quality of the UK stock market to a house made out of balsa wood. This includes giving shareholders less of a voice on matters like acquisitions, even though they are a company's owners.
"It feels as if the listing reforms could make the UK market a riskier place for investors if we get a wave of companies of questionable quality taking advantage of the relaxed rules and listing in London.
"Junior market Aim took a long time to shake off its negative reputation as the being the Wild West for investors, and we certainly don't want to see a similar tag slapped on the main market."
The new rules come in to effect on 29 July.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.