Investment Association responds to the FCA’s new premium listing category

Friday 08 June 2018

Comment on today's announcement from the FCA on a new premium listing category for sovereign-controlled companies, Chris Cummings, Chief Executive of The Investment Association said:

“The UK must remain a globally competitive and attractive place for companies to list, whilst also protecting the interests of those who invest in UK companies.

“We are pleased that the FCA has listened to investor concerns regarding independent votes on independent directors and disclosure obligations on related party transactions, but we are disappointed by the lack of a requirement for independent votes on them. The acid test for this new premium listing category will be whether companies meet the high standards expected by their investors. Savers must have confidence that a company is run for all shareholders.

“Listing rules are a minimum, not a target. We would encourage companies considering listing in this new category to voluntarily adopt higher standards to reassure investors that their interests will be protected.

“We continue to oppose the inclusion of companies in this new segment in all major equity indices as this would force UK savers to invest in these companies despite the loss of valuable and hard won investor protections.

“We expect the FCA to review this new segment after two years and evaluate whether there have been any unintended consequences, including adverse impacts on investors or market standards.”

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About the Investment Association:

• The IA champions UK asset management, supporting British savers, investors and businesses. Our 240 members manage £6.9 trillion of assets and employ 93,500 people across the UK.
• Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
• Our purpose is to ensure investment managers are in the best possible position to:
  • Build people’s resilience to financial adversity
  • Help people achieve their financial aspirations
  • Enable people to maintain a decent standard of living as they grow older
  • Contribute to economic growth through the efficient allocation of capital.
• The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
• The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.