Britain’s exit from the European Union has “cannibalized” London’s listing pool, according to JPMorgan Chase & Co.’s chief executive officer for Europe, the Middle East and Africa.
(Bloomberg) — Britain’s exit from the European Union has “cannibalized” London’s listing pool, according to JPMorgan Chase & Co.’s chief executive officer for Europe, the Middle East and Africa.
Vis Raghavan told Bloomberg Television’s Francine Lacqua on Tuesday that uncontrollable geopolitical shifts were acting against the listing environment in London and across Europe.
“Historically, London has been a big magnet for emerging market listings,” drawing in Russian and Indian companies, Raghavan said.
A lot of that has disappeared, with China becoming more domestically focused, he added, before turning his focus to Brexit. “Clearly, Brexit has kind of cannibalized the listing pool and a lot of European companies are now listing on European exchanges.”
Raghavan, however, said that London had been a great money center and said the rule of law and quality of regulation are a “huge plus” for the City.
It is now important not to “gold plate” UK’s regulation, he said, adding it’s crucial to preserve the attractiveness of London and maintain access to multicultural talent.
His comments come days after the co-founders of local financial technology firm, Revolut, launched a blistering attack on the UK as a place to run a business, saying they wouldn’t consider listing in London.
CEO Nik Storonsky and Chief Technology Officer Vlad Yatsenko said in an interview with the Times of London that the UK’s regulatory environment was holding them back and London’s appeal is on the wane after Brexit.
The UK is proposing significant changes to the listing rulebook in a bid to make London more attractive as a financial center.
The Financial Conduct Authority last week said it wants to replace its premium and standard listing categories with a single offering in a bid to attract more companies.
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