Can reforms save the London stock market?

The decline of the UK stock market has finally reached the Financial Conduct Authority (FCA). It has proposed to deregulate it in order to attract more companies to list in London rather than do as, for example, UK-based chip-maker ARM is doing and choosing to list in New York (it was once a UK-listed company before being bought out by the Japanese Softbank and is now being refloated).

The FCA has proposed that the London market become more tolerant of dual share structures – where, for example, a start-up might float on the stock exchange but retain a ‘golden share’ to ensure that the founders remain in full control over non-voting shareholders. It has also proposed that mandatory votes on things like the takeover of other companies be dropped, making it easier for the directors to grow the business against the wishes of more conservative shareholders.