UK Quoted Companies Alliance Challenges The Government To Create A Fit-For-Purpose Stock Market For Growth Companies

The Quoted Companies Alliance (QCA) has called on the Government to invoke immediate, holistic changes to repair the damage already inflicted on public equity markets which has impacted the small and mid-cap sector disproportionately.

In response to the first State of the Sector report which was released by HM Treasury (HMT) and the City of London Corporation earlier this year, the QCA has released its own report, entitled “State of the Small and Mid-cap Sector”, which examines small and mid-sized quoted companies in detail. It highlights the social benefits of public markets, sets an agenda for regulatory reform, and demands a change in attitude and perception by the Government, regulators and market operators.

The QCA argues that the needs of small and mid-caps must be addressed to ensure that UK public markets are fit-for-purpose, something which is currently lacking in the State of the Sector report as issued by HMT and City of London Corporation.

In particular, the QCA’s report puts forward solutions to improve the UK financial markets, including:

Supply-side solutions
- Establishing a new UK Listed Growth Market
- Enhancing secondary capital raising
- Prospectus reform
Demand-side solutions
- Reforming Solvency II
- Reforming pension fund investment
- Enhancing liquidity
- Increasing the quality and quantity of research
The need for proportionality
A new approach to reform and regulation.

View the full State of the Small and Mid-cap Sector Report her e.

Tim Ward, Chief Executive of the QCA, said:

“Our State of the Small and Mid-cap Sector report challenges Government, regulators and industry to work together to create a vibrant financial services sector to help fuel the UK economy. We have been encouraged through recent policy developments to share the voice of the small and mid-cap community however, it is concerning that our research continues to highlight the fall in number of quoted companies, and it must be our collective aim to reverse this.

To create public markets in the UK that are globally competitive and fit-for-purpose, we call on the Government to ensure that future market innovation and regulatory developments reflect the needs of small and mid-caps.”