By Huw Jones
LONDON, Nov 19 (Reuters) - Britain's finance ministry said
on Thursday a former financial services commissioner for the
European Union will review listing rules to make London more
attractive for tech companies.
Jonathan Hill will look at free floats and dual class share
structures, the finance ministry said, as Britain reviews its
rules to ensure London can compete with New York and Asia as it
loses unfettered access to the EU, its biggest customer.
Firms listed on the London Stock Exchange must currently
have a minimum 25% of their shares available for trading, but
some tech entrepreneurs are keen to maintain control of their
companies and have a lower "free float".
Dual class share structures, common in the United States but
restricted for top listed UK companies, allow some shares more
voting rights than others.
Shareholder groups oppose dual class shares, saying that
"one share, one vote" ensures better standards of corporate
governance and protects minority shareholders.
"More dynamic equity markets will enhance the UK’s position
as a world-leading financial centre, and drive growth and
innovation across the wider economy," Britain's finance minister
Rishi Sunak said in a statement.
Hill's review will make recommendations to the government
and the Financial Conduct Authority early next year.
He will also look at requirements on companies drawing up a
prospectus for investors, review existing rules for secondary
listings, and rules that require companies to provide a "track
record" of their financial performance.
(Reporting by Huw Jones;
Editing by Alexander Smith)