Don’t forget retail investors

interactive investor comments on the FCA consultation on the effectiveness of UK primary markets.

interactive investor, the UK’s second-largest DIY investment platform, welcomes today’s FCA consultation but wonders why retail investors, who play a crucial role in primary markets, are only referenced twice.

Richard Wilson, CEO, interactive investor, says: “While a strong believer in the one share, one vote principle, the proposed changes (which were clearly signalled by Hill) seem to be suitably limited to very specific circumstances where votes can be leveraged – a sensible middle ground has been found. If this encourages more founder-led, entrepreneurial businesses to come to market, then it’s a win, even if five years of protected rights is a lifetime in fintech land.

“On free floats, there was always an option for FCA to consider listings where a proposed free float was below 25%. The rationale given seems sensible enough, but this is likely to be one of the policy changes which can only be judged (in terms of its impact on liquidity) in the fullness of time.

“The hard truth is that we haven’t seen any progress on retail IPO access. The government is making mood noises but if we’re committed to accelerating UK economic development and competing on a global level as the home for the best companies, we need to engage ordinary shareholders - the retail investor. Sadly they are only referenced twice in this consultation.”