KPMG responds to Primary Market Effectiveness Review

A critical step towards futureproofing UK financial services

A critical step towards futureproofing UK financial services

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Linda Main, Head of Capital Markets Advisory, KPMG UK explains:

“The discussions around making the UK a more attractive listing destination is a critical step towards futureproofing the competitiveness of UK financial services.

“We are supportive of the FCA’s direction of travel, especially the proposal to introduce a dual class share system. Allowing company founders to maintain a significant share of ownership for a defined length of time could be a game changer in the decision to list in the UK.

“However, some proposals require further consideration. Whilst we agree with the FCA’s rationale for increasing the minimum market capitalisation and free float requirements, we do not believe the levels proposed will create sufficient liquidity.  Additional measures could be needed where you have a firm at or near the minimum requirement for both market capitalisation and free float. We are also supportive of the existing sponsor regime which helps ensure investor protection and efficiency in the listing process. In the absence of a sponsor regime the role of the listing authority would need to become substantially more active, and we see no significant upside in that.”

Karim Haji, EMA and UK Head of Financial Services, KPMG adds:

“The UK is faced with a unique opportunity to better position itself for the future. The primary market consultation is just one of many reforms under consideration by the FCA and PRA, and collectively these changes will have an impact. However, the focus can’t just be on tweaking our current market infrastructure, we also need to think about what our future market looks like and how we set about creating that. I hope we start to see some bold thinking on how we drive forward the Green finance agenda for example.” 


See the Responding to the FCA’s Primary Markets Effectiveness Review here.

For further media information contact:

KPMG Media Relations:

Tel: +44 (0) 207 694 8773

Christina Bridge ( Mon – Wed)


Tel: +44 (0)7789 504905


About KPMG

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients. 


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