LONDON, July 5 (Reuters) – Britain’s financial watchdog on Monday proposed making it easier for tech companies to list in London to strengthen the capital’s ability to compete with New York and the European Union following Brexit.
The Financial Conduct Authority (FCA) has proposed allowing dual class share structures for “innovative, often founder-led companies” for the first five years of a listing on the London Stock Exchange’s premium segment.
Dual class share structures allow company founders to maintain control at the expense of ordinary shareholders and are popular in New York and Amsterdam, the EU’s top share-trading centre.
They are already available in London on the standard segment, but shareholder rights groups who back “one share, one vote” oppose their introduction on London’s premium segment where top companies list.
“We have therefore made clear in our proposal that we will not allow artificial means of prolonging the 5 year period,” the FCA…