The Financial Services Authority (FSA) published Consultation Paper 06/4 in March 2006 on proposed changes to the Listing Rules for investment entities and proposed changes to the Listing Rules and Disclosure Rules to implement the Transparency Directive.
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The revisions will liberalise the listing regime and allow new types of investment entity to list. For the first time, there is a real prospect that hedge funds will be able to list on the London Stock Exchange.
The FSA summarised its approach as follows: "The proposed changes for investment entities replace the existing regime with a more principles-based approach to determining eligibility for listing. This would enable those employing a wider range of investment strategies, including those currently pursued by some hedge funds, to list in the UK for the first time. Appropriate investor protections would be maintained through revised and enhanced disclosure requirements."
The FSA cited various benefits flowing from the proposals including the fact that the changes, by facilitating the listing of a wider range of investment entities, were consistent with its objective to maintain the competitiveness of the UK markets.