Consultation Paper CP23-31-Primary Markets Effectiveness Review

Consultation Paper CP23/31 - Primary Markets Effectiveness Review: Feedback to CP23/10 and detailed proposals for listing rules reforms - PLSA Consultation response

Throughout the development of the FCA’s proposals for reforming the UK listings regime, our members have been concerned that the proposed changes would weaken shareholder rights by removing vital checks and balances, leading to a lack of diverse input and challenge from asset managers to companies.

Whilst we appreciate that the FCA’s underlying objective is to encourage and increase investment into UK growth, we do not believe that reducing shareholders ability to influence listed companies is the way to deliver growth.

Our members still have significant concerns on a couple of key issues:

  1. The removal of sunset clauses on Dual Class Share Structures.
  2. The removal of shareholder votes for significant and related party transactions.

Our response to this consultation reiterates these concerns and sets out viable alternatives for the FCA to consider.