Is the sun setting on London equities?
Is the sun setting on London equities? New report charts LSE’s ‘breathtaking’ decline over the last 25 years
The London Stock Exchange’s decline over the past 25 years has been ‘breathtaking’ and British stocks are no longer seen as must-own assets, a damning report has found.
The Investor Forum, which represents shareholders with more than £680billion in UK equities including US giant Blackrock and Norway’s sovereign wealth fund, warned in its annual review that the UK market needs reform.
It said the UK has been hampered by disagreements over executive pay, the ESG agenda and box ticking on corporate governance.
Decline: The Investor Forum, which represents shareholders with more than £680bn in UK equities, warned in its annual review that the UK market needs reform
The Investor Forum, which represents shareholders with more than £680billion in UK equities warned in its annual review that the UK market needs reform.
Boards, investors and regulators must do more to attract investment, it said.
Executive director Andy Griffiths said: ‘The declining relevance of UK equity markets over the last 25 years has been breathtaking.
‘It is crucial the focus of reform recognises the global nature of financing and seeks to create an environment in which UK-listed companies can again thrive.
‘We can’t simply hope for a better outcome. Practical steps are needed from companies, investors and regulators if we are to create a vibrant marketplace to attract capital.’
It comes as the Government works with regulators and the stock exchange to improve rules governing British markets, and develop businesses from start-ups to a point where they would list.