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FTSE considering tightening entry rules

Also reported in Reuters is the report that the FTSE is considering raising the free float requirement to 25% from 15% following investor concern over the ease of firms (especially overseas ones) with low free floats to list in London. The article states investors have voiced concern over companies with "hazy corporate governance standards" listing on the FTSE100 in particular. Currently non-UK incorporated companies are required to have free-floats of 50% leading to a recent trend of overseas firms setting up UK holding companies and upgrading to premium listing.

Chris Woods, head of index governance and policy at FTSE Group stated:

"This is something that we have been considering for a while, however it has added impetus right now given the trend for, mainly Russian, resources companies seeking a UK incorporation".

FTSE is consulting on the issue.