Investor group to warn against UK IPO changes
January 5, 2021
The Investment Association, which represents the UK's asset management industry, is poised to speak out against proposals for dual-class share structures and other changes to the IPO process. The UK, which last week completed its exit from the European Union, launched a review in November of its IPO rules in hopes of enticing tech companies to list on the London market. This could include the introduction of dual-class share structures, which give some shareholders more voting rights and are often used by US tech companies.
Sky News reported that the Investment Association—which represents managers like BlackRock and Fidelity—is expected to argue that the London Stock Exchange's premium segment must keep the one-share, one-vote structure to maintain investor protection.
The group, whose members together manage assets of £8.5 trillion (about $11.5 trillion), also will call for more focus on raising corporate governance standards for private companies, as well as an acceleration of the IPO process and reforms to bring more SPACs to the UK. The trade group is expected to submit its recommendations this week to Jonathan Hill, a former EU financial services commissioner leading a review of the rules.
Sky News reported that the Investment Association—which represents managers like BlackRock and Fidelity—is expected to argue that the London Stock Exchange's premium segment must keep the one-share, one-vote structure to maintain investor protection.
The group, whose members together manage assets of £8.5 trillion (about $11.5 trillion), also will call for more focus on raising corporate governance standards for private companies, as well as an acceleration of the IPO process and reforms to bring more SPACs to the UK. The trade group is expected to submit its recommendations this week to Jonathan Hill, a former EU financial services commissioner leading a review of the rules.