FTSE has introduced new rules for foreign companies planning to list on its major indices, which are intended to simplify the current rules and protect City Investors.
The rule change, announced through a nationality practice note, means foreign companies will have to sell at least 50 per cent of their shares in London, where previously they only had to issue 25 per cent of shares in the UK.
The rule replaces a previous more stringent rule, which was designed to ensure no one party or group of shareholders could control a foreign company. But under the previous regime it was still difficult to work out a firm’s ownership structure.
The only way around the rule was for companies to become incorporated in the UK.