RegulationCorporate GovernanceFSA to debate light-touch reputation with City

FSA to debate light-touch reputation with City

Regulator to act on concerns relating to foreign listings in debate with City leaders

Financial regulators acknowledged the increasing concern about the impact of
standards and London’s reputation on some listings.

The Financial Services Authority is to now
canvass opinions in the City about how to clarify regulations and to make clear
whether companies have chosen light-touch listing methods, which can offer
investors less protection.

The FSA said it was calling for debate on how to maintain a balance between
attracting new flotations and maintaining quality, the FT reported.

This comes a day after chief executive of the newly merged NYSE Euronext
exchange group, John Thain, criticised the
London Stock Exchange over corporate
governance
and the inadequate protection offered to minority investors by some
Russian companies.

The regulator’s decision to formalise the debate also follows pressure from
investor groups worried about the ability of companies with weak corporate
governance standards to raise capital on the LSE.

Further reading:

UK watchdog troubled
by LSE foreign listings

Balls leaps to defence of AIM markets

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