The International Corporate Governance Network (ICGN) sent a letter to the United Kingdom Chancellor of the Exchequer Jeremy Hunt and the Financial Conduct Authority regulator cautioning that a revamp of listing regulations aimed at enticing additional growth firms to the UK marketplace may diminish shareholders protections and weaken the nation's standing in corporate governance, the Financial Times reported on Friday.
The ICGN which manages assets totaling $77 trillion and oversees more than three-quarters of its assets from locations beyond the UK's borders is worried that "a more permissive approach to dual-class share structure" grants company founders enhanced voting privileges compared to regular shareholders.
Norges Bank Investment Management's Carine Smith who is one of the many signing the missive said that "the suggested reforms to the listing rules would result in weaker investor protection and could harm the UK’s reputation as a market."
