Memery Crystal hails review into London listing regime as Brexit deadline looms

The review, which also covers free float and track record requirements, was launched on 19 November in response to Rishi Sunak’s prior announcement that the UK’s listing regulatory regime would be relaxed in order to retain and attract the most innovative companies after the Brexit deadline of 31 December.

In the introduction to the review, Lord Hill says, “I believe strongly that we have to get on with setting out a positive vision for the future of financial services in the UK [and] I think that the City itself should play an active part in shaping that future.”

Industry experts have been asked to provide evidence and views around dual class share structures and dual and secondary listings, as well as free float requirements, track record requirements and prospectuses. The review will remain open until 5 January next year.

Commenting on the review, Nick Davis, CEO of Memery Crystal said:

“It is absolutely right that Lord Hill should use the Chancellor of the Exchequer’s announcement as an opportunity for London to re-examine and re-enforce its listing regime so that it works even harder for the benefit of both domestic and international companies. In particular, London’s dual listings infrastructure is one of the UK’s greatest assets – they have been extremely popular for years, not least because of the capital’s reputable regulatory environment and the fact that it offers the deepest pools of capital in Europe, allowing companies to fundraise with ease. The affirmative action taken by Lord Hill is a prescient acknowledgment of the necessity of maintaining these advantages for the benefit of international businesses and investors; and a wise move towards bullet-proofing an essential offering after the UK leaves the EU.

“The fact that the review runs until 5 January means that we start the new year by formulating a new plan with a clear vision that the UK can use to achieve great things. Here at Memery Crystal, we will be submitting views based on our extensive experience as well as on behalf of our many dual-listed clients and we look forward to helping to shape the future of the UK listing regime, and to what 2021 will bring.”

“In particular, we think this is a fantastic opportunity to recognise the ‘equivalency’ of a number of markets to our own, simplifying and streamlining the listing process for overseas companies, in particular in the natural resources sector.”

“Further, the ability of the UK to simplify the process for raising capital in London for companies listed on the Main Market would be a welcome step and further enhance London’s attractiveness for overseas companies.”

The news of Lord Hill’s review follows the announcement by the European Securities and Markets Authority (ESMA) in October that EU investors will still be able to trade sterling-quoted shares of European companies listed in London after the Brexit deadline. Trading of EU shares on a UK exchange in pounds will be exempt from EU rules which determine which venues investors can use to trade.

Commenting on ESMA’s announcement, Nick Davis said:

“ESMA’s announcement is yet another indication of the importance of London dual-listings to international companies. It is in everyone’s interests that these companies and their investors continue to have free access to the London Stock Exchange and benefit from the very best infrastructure the UK can provide.”

Interested parties can submit evidence to Lord Hill’s HM Treasury review here: https://www.gov.uk/government/publications/uk-listings-review/call-for-evidence-uk-listings-review

Memery Crystal is helping international companies achieve a London listing and has overseen high profile, high value deals such as October’s listing of Yamana Gold, the third biggest listing by market cap ($5.58 billion / £4.3 billion) of 2020.