On 3 March 2021, the UK Listing Review, chaired by the Rt Hon. Lord Jonathon Hill, published its recommendations for reform of the Listing Rules of the London Stock Exchange1 (the LSE) (the UK Listing Rules). The reforms are aimed at increasing the attractiveness of the UK as a listing venue, particularly for new economy companies, while also maintaining high standards of investor protection.
The key proposals include:
- allowing companies with a dual class share structure to list on the premium segment of the LSE;
- reducing the free float requirements and allowing companies to use other measures to demonstrate liquidity;
- relaxing the rules in relation to special purpose acquisition companies (SPACs);
- rebranding and remarketing the standard listing segment of the LSE; and
- reviewing the prospectus regime.
The recommendations further propose a review of the recently introduced conduct of business rules in the Financial Conduct Authority Handbook (the FCA Handbook) and various recommendations are aimed at better monitoring and delivering results with respect to enhancing the UK’s attractiveness, improving investor experiences and meeting investor needs.
