The Financial Conduct Authority has proposed “significant changes” to the UK listing regime to encourage more companies to list in the UK.

The regulator wants to make the rules more effective and easier to understand.

There have been concerns that the number of companies choosing to list in the UK is falling, with some looking overseas to list.

The FCA has proposed replacing its existing ‘standard’ and ‘premium’ listing segments with a single category for equity shares in commercial companies.

The single category would remove eligibility requirements, be more permissive on dual class share structures and remove mandatory shareholder votes on transactions such as acquisitions.

Requirements would be focused on transparency for investors and sponsor oversight at the listing gateway to ensure companies can meet the FCA’s standards.

According to the regulator, listings in the UK have fallen by 40% since 2008, partly due to the listing regime being seen as, “too complicated and onerous”.

Nikhil Rathi, chief executive of the FCA, said: “London is a major international market with a deservedly good reputation globally among companies aiming to raise capital.

“Our proposed reforms would significantly rebalance the burden of regulation to the benefit of listed companies and investors who are willing to set their own risk appetite and terms of engagement.”

The rules were last changed following Brexit two years ago.

In 2021 the FCA changed listing regime by lowering free float levels, allowing certain forms of dual class share structures and introducing digital financial reporting.