CBI launches group to empower companies on compliance issues

The decline of the FTSE over the past two decades has raised concerns among companies and regulators alike, as activity, returns, and listings have all diminished. Many firms have opted to de-list from the FTSE, seeking more favorable conditions in other markets. This trend has prompted discussions in boardrooms across the UK about the future of London as a financial hub. Despite its strengths in areas like foreign exchange and private equity, the health of the stock exchange is crucial for the overall vitality of the financial services sector. The situation is reminiscent of historical precedents, such as the closures of stock exchanges in Edinburgh and Manchester in 1973, which serve as cautionary tales for London. The loss of a thriving stock market can lead to a broader decline in financial services, impacting investment and economic growth. As companies weigh their options, the importance of maintaining a robust stock exchange becomes increasingly evident. Various factors have contributed to the FTSE's relative decline, including regulatory challenges, market competition, and changing investor preferences. These issues have led to a growing sentiment that the current regulatory environment may not adequately support the needs of listed companies. As a result, there is a pressing need for a platform that can articulate when compliance may not be in the best interest of businesses. In response to these challenges, the CBI is taking proactive steps to empower companies on compliance issues, aiming to give them a voice in the regulatory landscape. This initiative seeks to address the concerns of businesses and ensure that the FTSE remains a viable option for companies looking to list in the future.