Major Changes Proposed For Controlled Companies With A Premium Listing

On 26 January 2012, the FSA issued consultation paper CP 12/2 in relation a large number of proposed changes to the Listing Rules.

At the time, there was a significant amount of debate about the increasing number of controlled companies on the premium segment of the Official List that had most of their assets and trading operations in overseas jurisdictions, as well as their controlling shareholders. In particular, it was noted with concern that tracker funds were obliged by their rules to invest in many such companies due to the fact that they were included in the FTSE indices. The FSA noted such concerns in the consultation paper and, whilst it distanced itself from the rules regarding the constituent members of the indices, declared that it would in the future consult upon changes to the Listing Rules and issues around the quality of the premium listing regime, free float requirements, minority shareholder protection and corporate governance in order to