Britain is proposing reforms to list the company to reach New York By Reuters

By the hand of Huw Jones

LONDON (Reuters) – Britain’s financial watchdog on Monday proposed making it easier for tech companies to list in London after the Brexit to strengthen their ability to compete with New York and the European Union.

The Financial Conduct Authority (FCA) has proposed allowing “double-class shareholding structures” for “innovative companies, often those created” listed on the premium segment of the London Stock Exchange.

Double-class share structures are well-known in New York, allowing company founders to maintain control to the detriment of ordinary shareholders.

They are already available in the standard London segment, but the shareholder rights groups that support “one share, one vote” are opposed to being included in the list of the best companies in the London premium segment.

The FCA has also proposed reducing the number of free mobile shares that should be available to the public or from 10% to 25%.

The minimum market capitalization, however, for the first and standard segments for ordinary trading companies would rise to £ 50,000 ($ 69 million).

The proposal is backed by former European Commissioner Jonathan Hill to revise the rules on the list, saying London would help restore what was happening in New York and elsewhere.

“These proposals are crucial if we are to continue to make the UK a modern and dynamic market. We are now assertively meeting the needs of an evolving market,” said Clare Cole, FCA’s Director of Market Supervision.

“Our proposals should have a wider range of listings in the UK and provide a greater opportunity for investors, while continuing to ensure an adequate level of protection for investors.”

The public consultation on the proposals will close in September, and the final rules will be issued before the end of 2021.

The FCA will announce the latest rules to streamline SPAC or special purpose business listings in New York and Amsterdam.

($ 1 = 0.7227 pounds)