Call for FTSE entry rule shake-up to protect UK equity investors

Industry figures have urged the authorities to make it tougher for companies to list in the UK, as the FTSE launches a consultation on entry rules.

Sparked off by concerns over a fresh influx of mining companies, they warn the implications of allowing the rules to be maintained in their current form include threats to corporate governance, share price volatility and liquidity concerns for UK equity investors. The FTSE Group this month launched a consultation into whether it should raise requirements on free floats – the amount of a company’s stock available for public investment. It is asking whether it should require a free float of at least 25% for UK-incorporated companies before they are eligible for inclusion in its indices,...