LONDON: An investor group whose members manage assets equivalent to a quarter of the value of the UK economy has called for listing rules to be changed to better protect minority shareholders.
The Association of British Insurers (ABI), whose members manage nearly $ 3 trillion of assets, said it wanted companies listing on the London Stock Exchange to make more information available more quickly to all investors.
It also wants tougher rules on how majority stakeholders conduct and disclose their business with their companies.
Robert Hingley, ABI director of investment, said its report, based on a survey of investors and bankers, had met a “sympathetic” response among regulators and in government.
However, some in the industry thought it added little to previous debate, or were skeptical whether much would change.
“All of these things would be good but I’m not totally convinced how achievable they are,” said Julian Chillingworth, chief investment officer at investment manager Rathbones .
“Will the members of the ABI back them up by saying they won’t apply for an issue if they don’t think it’s being handled in the right fashion or it’s a minority stake being placed?“
The UK Listings Authority (UKLA) ran a consultation on potential changes to listing rules late last year and is still in discussions with those in the market on how they can be improved. It plans to report back over the summer and was not immediately available for comment on the ABI’s views.
Investor group calls for listing rules shake-up
