FSA garners support for review of listing rules

The FSA has reported “generally supportive” feedback to its review of the rules governing company listing.

Ken Rushton, director of listing at the FSA, says: “The feedback we have received so far has been supportive of the FSA&#39s current approach and has highlighted the need to maintain UK standards of investor protection.

“We have established theme teams in four key areas – corporate governance, continuing obligations (covering corporate communications and shareholders&#39 rights), financial information and the sponsor regime.”

The FSA reports mixed views on the theme of corporate communications, particularly on the selective disclosure of price sensitive information. The majority of respondents agreed that the rules relating to the publishing of forward-looking information needed reform.

For financial information, respondents do not generally favour a significantly increased role for the FSA. There is strong support to maintain the requirement in the listing rules for a working capital statement.

Most respondents support the current sponsor regime. However, some questioned whether others could not undertake the role played by sponsors, and there was also a concern that the requirements for qualifying as a sponsor were onerous.

The FSA will publish further consultation papers to consider the themes in more detail.