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FCA confirms listing rule changes to boost stock market

Lower free float and greater controls for founders now allowed for newly-listed companies
FCA confirms listing rule changes to boost stock market

The financial watchdog has implemented a handful of changes proposed in the UK Listing review and the Kalifa Review of Fintech, in a bid to encourage innovative founder-led companies to list in London and improve the quality of companies in leading UK indices.  

Among the most significant of the changes, which came into force on 3 December, is allowing a “targeted form” of dual class share structures within the premium listing segment. Firms with a premium listing benefit from increased liquidity and are eligible for inclusion in the FTSE indices. 

Another key change is reducing the amount of shares an issuer is required to have in public hands from 25 per cent to 10 per cent. These changes bring the listing rules in London closer to the US, which the UK has been losing listings to in recent years.  

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