London simplifies listing rules to boost City district

LONDON

Britain on Thursday launched a simplification of stock market listing rules, designed to attract more companies and boost the appeal of the capital's City finance district.

The shake-up, unveiled by the Financial Conduct Authority (FCA) watchdog and due to come into force on July 29, was also praised by new U.K. finance minister Rachel Reeves.

"The new rules are the biggest changes to the listing regime in over three decades," the FCA announced in a statement.

"They aim to support a wider range of companies to issue their shares on a U.K. exchange, increasing opportunities for investors."

The overhaul will simplify the regime with one single listings category, while streamlining eligibility for companies seeking to list their shares in London.

In addition, it will also remove the need for votes on significant transactions and offer more flexibility over voting rights.

Shareholder approval will still be required for key events like reverse takeovers and delisting.

"The new rules involve allowing greater risk," the FCA said, but added it "believes the changes set out will better reflect the risk appetite the economy needs to achieve growth."

The announcement comes one week after Reeves' Labour Party won power in a landmark vote that ended 14 years of right-wing Conservative rule.

Center-left Labour, which had put growing the U.K. economy at the heart of its manifesto, won last week’s general election with a sizeable majority.

"The financial services sector is central to the U.K. economy, and at the heart of this government's growth mission," said Reeves in the FCA statement.

London's stock market is seeking to remain a strong global force amid increased competition from European rivals after Britain's exit from the European Union.