Railpen has led a letter urging the FCA to reconsider the listings rules
A group of asset owners has signed a letter to the Financial Conduct Authority (FCA) about revised UK listing rules.
The group, led by the Asset Owner Council UK Corporate Governance Group, wrote to the FCA warning about the impact the revised CP23/31 proposals would have on member outcomes and the health of capital markets.
The letter addressed to FCA chair Ashley Alder said the rules risk "making UK-listed companies look less attractive" to "high-quality, long-term investors".
It said the rules would enable "long-term dual-class share structures" and dilute shareholder rights, leading to worse outcomes for members, while the cost of capital for UK-listed companies could be raised as a result of the increased risk.
It added the new proposals had taken account of "neither the evidence base, nor the views of investors", and also raised concerns about the short timeline of the implementation, with reports suggesting a final decision might be announced "only a few weeks after the general election".
