We have published the first edition of our position paper on the future of the UK market structure for quoted companies. As the UK leaves the European Union, we see an exceptional opportunity to initiate action and secure a thriving market environment for the future. The paper sets out our vision for the future of the UK market structure from the point of view of small and mid-size quoted companies so that UK capital markets remain vibrant, efficient and continue to generate growth and jobs. It outlines three key messages:
1. Create stability and flexibility in UK capital markets by:
- Protecting economic stability during the negotiations and avoid actions which may cause major disruption to the markets;
- Simplifying the tax system and making it more certain to promote long-term investment;
- Giving companies sufficient transition time to adjust to any new measures resulting from the UK's departure from the EU;
- Preserving and strengthening AIM and NEX Exchange as exchange regulated markets with a flexible regulatory framework; and
- Exploring alternative vehicles for public company investment to boost the attractiveness of capital markets and encourage companies to seek public equity.
2. Recalibrate EU-driven legislation to suit UK market standards by:
- Reviewing specific pieces of EU-driven legislation, such as the Market Abuse Regulation and MiFID II to make them suit UK markets;
- Establishing a dual mandate of competition and productivity for the FCA to ensure the cost of additional regulation is weighed against any potential adverse economic effect; and
- Adopting a "think small first" policy to protect growth companies from the rules aimed at large businesses.
3. Agree on reciprocal market access and movement of workers between the UK and the European Union by:
- Retaining the easy flow of capital, goods and services between the UK and the European Union to facilitate investment and entrepreneurship opportunities;
- Ensuring that any changes to tariffs are implemented gradually to allow companies absorb any costs over time; and
- Guaranteeing easy access to skilled labour from European Union member states without prohibitive levies to protect UK competitiveness and protect the future growth and development of UK companies.
You can read the position paper in full here.
This will be a document that we will update on a regular basis. Please let us know your views on how to develop the position paper further by contacting Callum Anderson on 020 7600 3745 or at callum.anderson@theqca.com.
