Friday 08 June 2018
Comment on today's announcement from the FCA on a new premium listing category for sovereign-controlled companies, Chris Cummings, Chief Executive of The Investment Association said:
“The UK must remain a globally competitive and attractive place for companies to list, whilst also protecting the interests of those who invest in UK companies.
“We are pleased that the FCA has listened to investor concerns regarding independent votes on independent directors and disclosure obligations on related party transactions, but we are disappointed by the lack of a requirement for independent votes on them. The acid test for this new premium listing category will be whether companies meet the high standards expected by their investors. Savers must have confidence that a company is run for all shareholders.
“Listing rules are a minimum, not a target. We would encourage companies considering listing in this new category to voluntarily adopt higher standards to reassure investors that their interests will be protected.
“We continue to oppose the inclusion of companies in this new segment in all major equity indices as this would force UK savers to invest in these companies despite the loss of valuable and hard won investor protections.
“We expect the FCA to review this new segment after two years and evaluate whether there have been any unintended consequences, including adverse impacts on investors or market standards.”
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