Revolut CEO blasts London Stock Exchange as ‘not rational,’ eyes US for IPO

400ixl

Revolut's ethics have always been about maximising revenue & profit regardless, even at the expense of customers. No surprise with their comments really.

Baldytyke88

wmb194 said:

How would reducing stamp duty achieve that? It's only due on secondary market purchases anyway*, primary issuance e.g., IPOs and rights issues is exempt. It's more a tax on investors than business and it also raises an easy c.£3.5bn a year.  Not that I would complain if it was trimmed e.g., France's equivalent is 0.3% and Spain's 0.2%.

*Market makers are exempt.

https://ifs.org.uk/sites/default/files/output_url_files/comm89.pdf

[Deleted User]

It's not just the stamp duty, it's lack of liquidity, ridiculous regulations among other things. Revolut isn't the first company to raise these concerns. 

Who else is old enough to remember when the UK used to be the beacon of the world for investment and floating your company circa 1990? Now foreign companies actively avoid listing on the LSE, not only that but even our own companies are avoiding it. 

There comes a point where you need to question why the massive decline. 



The stats speak for themselves. 

masonic

Which regulations specifically do you think should be abolished?

wmb194

[Deleted User] said:

It's not just the stamp duty, it's lack of liquidity, ridiculous regulations among other things. Revolut isn't the first company to raise these concerns. 

Who else is old enough to remember when the UK used to be the beacon of the world for investment and floating your company circa 1990? Now foreign companies actively avoid listing on the LSE, not only that but even our own companies are avoiding it. 

There comes a point where you need to question why the massive decline. 



The stats speak for themselves. 

The number of companies listed in the US has declined massively as well. It’s a problem of ‘deequitisation’ and a huge number of companies being taken private and not IPO-ing at an early stage like they used to due to the availability of deep pools of private capital.

The Zeitgeist is with the US at the moment. I guess he also failed to mention listing in Paris, Frankfurt, Madrid and Amsterdam? 

But if you’re worried about regulations the US really isn’t the place to go. One misstep and you’re hit like a ton of bricks, particularly if you’re a bank and accused of lax money laundering controls e.g., Standard Chartered’s travails some years ago.

masonic

I'm sure M&A activity will be a factor too.

Albermarle

One company going against the trend.

Canal+ IPO offers hope for troubled London Stock Exchange

poseidon1

[Deleted User] said:

It's not just the stamp duty, it's lack of liquidity, ridiculous regulations among other things. Revolut isn't the first company to raise these concerns. 

Who else is old enough to remember when the UK used to be the beacon of the world for investment and floating your company circa 1990? Now foreign companies actively avoid listing on the LSE, not only that but even our own companies are avoiding it. 

There comes a point where you need to question why the massive decline. 



The stats speak for themselves. 

Your post points to just one aspect of a serious decline in the UK's listed companies available to the investing public, and the growing propensity for forward looking UK businesses seeking listings on the NYSE. 

I referred to the larger problems affecting UK PLC in a previous post linked below, but seems to have  fallen on deaf ears. 


https://forums.moneysavingexpert.com/discussion/comment/81155706#Comment_81155706


It could  be that the long term implications of UK companies being voraciously acquired by private equity/ foreign entities ( the latest being Hargreaves Lansdown) , is neither appreciated or fully understood by the investing public ( the massive future loss of corporation tax receipts is one of the more egregious outcomes). 

For those who are aware however, since there is absolutely nothing they can do other than watch helplessly from the sidelines, this has likely engendered a degree of apathy. 

Hoenir

There's no end of threads where newer investors regard UK listed companies as being afflicted by the Black Plague. As if a US listing is somehow a mark of superiority. Without the slightest comprehension as to what they are referring too. Merely repeating parrot fashion the misinformation that prevails on social media. 

masonic

poseidon1 said:

Your post points to just one aspect of a serious decline in the UK's listed companies available to the investing public, and the growing propensity for forward looking UK businesses seeking listings on the NYSE. 

I referred to the larger problems affecting UK PLC in a previous post linked below, but seems to have  fallen on deaf ears. 

https://forums.moneysavingexpert.com/discussion/comment/81155706#Comment_81155706

It could  be that the long term implications of UK companies being voraciously acquired by private equity/ foreign entities ( the latest being Hargreaves Lansdown) , is neither appreciated or fully understood by the investing public ( the massive future loss of corporation tax receipts is one of the more egregious outcomes). 

For those who are aware however, since there is absolutely nothing they can do other than watch helplessly from the sidelines, this has likely engendered a degree of apathy. 

If there is nothing we can do, then there is little point in getting worked up about it. It's quite rare that an investor focuses their portfolio on UK listed companies. It doesn't seem limited to the UK though. It has been noted that there has also been a huge shift from public to private equity in the US. See for example https://www.morganstanley.com/im/publication/insights/articles/articles_publictoprivateequityintheusalongtermlook_us.pdf