Press Release

UK LISTING REGIME MUST PRESERVE UK's PREMIER POSITION

Monday 21 April 2008

Responding to the FSA's discussion paper on the structure of the listing regime, the Investment Management Association (IMA) welcomes the review and considers that this is an opportune time to be considering issues of quality, clarity and transparency.

In its response, the IMA makes the following points:

For investors it is crucial that the interaction of the listing regime with the FTSE UK Index series is fully taken into account;
The UK Listing Authority (UKLA) alone should be responsible for setting the standards for listing;
The UKLA should continue to set super-equivalent standards for listing in the UK, in order to preserve the UK's position as a premier location for raising capital;
Investor protection would be seriously diminished were FSA to allow listing onto a Multi Lateral Trading Facility (MTF) rather than maintaining the current requirement that a listed share is admitted to a regulated market;
Investors are attracted to the proposal for combining listing for equity securities in a single segment of the List, but are more concerned to ensure that listing remains high quality however it is structured;
Overseas issuers with a Primary Listing in the UK should be required to adhere to equivalent standards as UK incorporated issuers on pre-emption rights and the "comply or explain" requirements of the Combined Code. 
Commenting, Richard Saunders, Chief Executive of IMA, said:

"Investors want a UK Listing to be available only to those issuers prepared to comply with the highest standards of corporate governance.  We urge the FSA to weigh issues of quality carefully against any pressure to depress standards. The important objective of continued international competitiveness is not served by surrendering the London brand to "sub-prime" issuers. High standards and competitiveness should be synonymous in this instance."  

A copy of IMA's response can be viewed here

A copy of FSA's discussion paper can be viewed here