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New Review launched to attract high-quality innovative companies to list in UK

Lord Hill appointed as Chair of UK Listings Review.

  • review will propose reforms to listings rules to make it easier for companies to access the finance they need to grow
  • review is part of plan to renew the UK’s position as the world’s pre-eminent financial centre

New review to make sure the UK remains one of the most attractive places to list and grow high-quality innovative companies launched today (19 November 2020).

As part of the Chancellor’s plan to strengthen the UK’s position as a leading global financial centre, the UK Listings Review will launch today and be chaired by Lord Hill.

It will review the rules governing how companies raise equity capital on UK public markets and make recommendations to optimise the process.

The UK already has some of the deepest and most liquid equity markets in the world, with over £30 billion raised through the first six months of the pandemic.

The Review will help to attract more high-quality initial public offerings and equity listings to the UK by ensuring that large and small companies – including innovative, high-growth firms from across the globe - can more easily access the finance they need here.

Rishi Sunak, Chancellor of the Exchequer, said:

As we start this new chapter for UK financial services, we want to attract the most successful and innovative companies to list and grow here in the UK.

I am delighted that Lord Hill will be spearheading efforts to reform our listings rules and help companies raise capital in the UK’s open, well-regulated and transparent markets.

More dynamic equity markets will enhance the UK’s position as a world-leading financial centre, and drive growth and innovation across the wider economy.

Lord Hill said:

To drive the economic recovery, we need the strongest possible financial services sector in the UK. Helping to improve the climate for raising capital in London is only one part of getting the whole financial ecosystem right, but I hope it is an area where we can make some quick early progress and help show a path forward.

I am very keen to involve the industry in our work, which is why we are kicking things off today with our Call for Evidence.

Lord Hill will work with people from across the financial services sector, as well as legal and academic experts, to develop a list of recommendations which will be presented to government and the Financial Conduct Authority early next year.

Amongst other measures, the review will consider the rules around free floats, dual class share structures and track record requirements; the requirements to produce a prospectus; and the rules for secondary listings where companies are already listed in countries with high corporate governance standards.

High standards of corporate governance, shareholder rights and transparency will remain a central part of the UK’s attractiveness as an international financial centre, and the review will pay the highest regard to this reputation when making its recommendations.

The review is separate but complementary to the government’s plans to reinforce London’s reputation for clean and transparent markets by introducing a power to block listings on UK financial markets on the grounds of national security.

Further information

The objectives and scope of the review are set out in the terms of reference.

 

Channel website: https://www.gov.uk/government/organisations/hm-treasury

Original article link: https://www.gov.uk/government/news/new-review-launched-to-attract-high-quality-innovative-companies-to-list-in-uk

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