27 September, 2021

Easing rules for sovereign-controlled listings ‘detrimental’ to governance

UK plans to free up listing rules to attract sovereign-controlled companies could have a detrimental impact on the region’s reputation for sound corporate governance, warns the Institute of Directors.

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Plans to open up UK listing rules to attract sovereign-controlled companies are “opportunistic” and “could exert a detrimental impact” on its reputation for sound corporate governance, the Institute of Directors (IoD) has warned. In a strongly-worded submission to the Financial Conduct Authority’s consultation on creating a premium listing category for sovereign-controlled companies, the IoD flagged up the potential risk for state-run interference over these companies. It has not only called on the authority to reconsider its plans, but to strengthen them. “We have no objection to the creation of a new sub-set of the premium

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corporate governance, Dr Roger Barker, Financial Conduct Authority, Institute of Directors, listing rules, sovereign-controlled companies, State owned enterprises, Stephen Martin