FSA looks to tighten UK listing rules

The Financial Services Authority (FSA) has unveiled plans to tighten UK listing rules to prevent a small number of dominant shareholders having too much control over a listed company.

In a consultation paper on the listing regime, the FSA said it plans to tighten rules allowing exemptions for takeovers where a firm gets a London listing by merging with an already listed company. The move comes days after Bumi, an Indonesian venture that was listed on the London Stock Exchange via a reverse takeover, launched an inquiry into $500m of alleged irregularities at subsidiaries. The proposals will strengthen corporate governance rules by preventing shareholders with more than 30% of equity from dominating the running of the firm. The FSA added it will insist on a major...