FSA Consults on Changes to the Listing Rules to Enhance the Effectiveness of the Regime

On October 2, the UK Financial Service Authority published a consultation paper proposing a number of changes to the UK listing rules that aim to “enhance the effectiveness of the Listing Regime”. This consultation paper comes after a long period of discussion in the UK market regarding the influence of controlling shareholders on the corporate governance of premium listed issuers. The main proposals: (i) impose more stringent corporate governance and compliance requirements for premium listed issuers, in particular those which have a controlling shareholder; and (ii) adjust but retain the much debated 25% public free float requirement.