The UK will relax listing rules in London due to the negative impact of Brexit

Written by Howe Jones

LONDON (Reuters) – British Finance Minister Rishi Sunak said the UK will update listing rules to attract more high-growth companies and so-called “blank check” IPOs after a study promoted by the government indicated that London exists. Defect after Brexit.

The London Stock Exchange has faced tougher competition from the New York Stock Exchange and NASDAQ in New York and Euronext in Amsterdam since the UK left the European Union completely on December 31.

In an effort to maintain competition in London internationally, it mandated Sunak to review the IPO rules in November. The report, led by former European Commissioner Jonathan Hill, released its recommendations on Wednesday.

The Financial Conduct Authority (FCA) said it would act quickly if needed. It will publish a consultation document before the summer and seek to develop “relevant” standards by the end of 2021.

The government is under pressure to take action and last week announced a fast-track work visa scheme for fintech companies, after much of the trading in euro stocks and swaps left London to move to Amsterdam and New York.

Nicholas Holmes, director of the capital markets law firm Ashurst, said the study could not have been conducted before Brexit.

According to Hill, “The formation of the FTSE Index illustrates another challenge: the most important companies listed in London are one or more financial firms representing the“ old economy ”than firms of the future.

He added that there was a feeling that the financial sector was “in decline” due to Brexit and competition from Amsterdam. (Additional reporting by Abinav Ramnarayan; Editing by David Evans, Louise Heavens, and Alexander Smith)

READ  Attorney Standard William Barr testifies just before Dwelling Judiciary Committee

Leave a Reply

Your email address will not be published. Required fields are marked *