(Alliance News) - Rules around UK listing could see a major overall after a Treasury-backed review called for changes around special purchase acquisition vehicles, the Financial Times reported on Tuesday.
https://www.ft.com/content/2079bd8e-79b7-4820-9be8-c20020f48aee
The FT said the review would allow London to "better compete against rivals in New York and Europe" amid a "booming market" for spacs, which provide a quick way for companies to go public.
Recommendations from the review, which was commissioned by Chancellor Rishi Sunak and undertaken by former EU financial services commissioner Jonathan Hill, include a lower limit on the free float of shares in public hands to 15% from 25%, which would let founders keep hold of more shares when listing.
The FT also cited Hill as wanting to "empower retail investors" through assisting them in taking part in capital raises and proposing a "complete rethink" for company prospectuses in order to encourage fundraising and reduce regulations. He also proposed a rebrand for London's standard listing segment to improve its appeal.
Other proposals include amending the liability regime to make it easier for companies to give forward-looking guidance when raising capital and allowing dual-class shares so that founders have more control of businesses. Recommended safeguards around the proposals include a five-year limit for dual shares.
The FT reported that the UK government has said it will examine recommendations from the review, with many needing consultations from the Financial Conduct Authority.
Hill has "recommended that the FCA be charged with maintaining the UK's attractiveness as a place to do business as a regulatory objective", the FT reported.
By Anna Farley; annafarley@alliancenews.com
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