The London Stock Exchange could be simplified, scrapping the existing two-tiered structure, to encourage more start-ups to list.
The FCA has proposed crunching the existing two-tiered approach for listings, which splits companies between a “premium” segment that carries the highest levels of regulatory requirements and the “standard” segment which carries a lower bar of corporate governance.
Critics argue that this has created an unnecessary stigma around companies that have had to settle for standard listings, which has deterred some founder-led start-ups where the management want more flexibility over areas such as share classes. Standard listed companies are also not eligible for inclusion in the FTSE index.
