Shake-up for listing rules

THE biggest shake-up in the Listing Rules which govern what quoted companies must do to have their shares traded on the London Stock Exchange was promised by the Financial Services Authority today.

Launching a lengthy consultation period preceding new rules in the summer of 2005 at the earliest, FSA managing director Michael Foot said: 'The Listing regime is a quality brand and includes a number of standards which are higher than those proposed directives emerging from the EU.‘

Among the possible changes is the power for the FSA to disqualify directors who have been involved in serious breaches of the Listing Rules.

It also suggests that companies will have to win shareholders' approval if they want to de-list their shares. This has been used recently as a back-door route to taking a company private, leaving minority shareholders with much reduced or worthless investments.

Companies involved in controversial de-listings include SFI, getmapping and Monsoon, which is shifting from a full listing to AIM.

In a threat to the investment banking world, the FSA will consult on whether companies require sponsors for new issues and major transactions.