Dual-listed UK shares handed no-deal Brexit reprieve
European investors will be able to buy shares in these huge British companies post Brexit after all.
31st May 2019 09:39
by Kyle Caldwell from interactive investor
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European investors will be able to buy shares in these huge British companies post Brexit after all.
European Union regulators have ditched plans that would have forced European investors to trade shares in some of the UK's biggest companies on the continent's exchanges under a no-deal Brexit scenario.
Under the previous proposals European banks and investments firms, including European fund managers, would not have been able to buy dual-listed UK shares on the UK exchange. This would have stopped European investors buying the UK share listings for companies such as Vodafone (LSE:VOD), BP (LSE:BP.), GlaxoSmithKline (LSE:GSK) and Rio Tinto (LSE:RIO). In total, 14 stocks would have been impacted.
But EU regulators have now abandoned those plans, and under a revised approach proposed today (29 May), EU banks and investment firms will be able to trade all UK shares in the UK, where for most more liquidity exists.
The Financial Conduct Authority welcomed the move, but warned that despite the softened stance UK investors should prepare for disruption under a no-deal Brexit scenario.
It added: "A number of shares with EU-27 ISINs have a listing, as well as their main or only significant centre of market liquidity, on UK markets. In our view, the ISIN that a share carries does not and should not determine the scope of the Share Trading Obligation. Some shares have their main or only centre of market liquidity outside the country in which the issuer is incorporated.
"This approach would place restrictions on a company's access to investors and freedom to choose where they seek a listing on a public stock market."
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.