A group of UK pensions criticized the Financial Conduct Authority’s proposals to make London a more attractive financial center by loosening rules around stock market listings.
(Bloomberg) — A group of UK pensions criticized the Financial Conduct Authority’s proposals to make London a more attractive financial center by loosening rules around stock market listings.
Ten pension managers including Railpen and HSBC Holdings Plc’s retirement fund said in an open letter published Wednesday that rolling back investor protections to make listings easier would diminish the UK’s global reputation and make it “more challenging to act as effective stewards.”
As the government tries to improve London’s prospects following Brexit, the FCA this week completed a consultation on replacing premium and standard listing categories, making it easier for companies to have two classes of shares. This format is favored by some entrepreneurs who want to keep control of their businesses even after they have gone public. It could also remove mandatory shareholder votes, including on acquisitions.
The pensions, which together manage about £300 billion for 22 million members, said equal voting rights are the “foundation of a fair and democratic capitalist system.”
Read more: UK Plans to Loosen IPO Rules Amid Angst Over Dearth of Deals
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