3rd Dec 2024 09:56
(Alliance News) - The UK's top financial watchdog has suggested it could allow fast fashion company Shein to list on the London Stock Exchange, due to the regulator's focus being on disclosure rather than "every aspect of their corporate behaviour", the Financial Times reported Monday.
Financial Conduct Authority Chief Executive Nikhil Rathi told the FT that it was "not unusual" for UK-listed companies to carry legal risks globally. However, a priority is ensuring risks are disclosed, so investors can make informed decisions.
"What parliament has not asked us to do is to be a broad regulator around every aspect of corporate behaviour," Rathi said, but declined to comment on Shein specifically.
Shein filed confidential paperwork related to an initial public offering to FCA back in June, the FT had reported, targeting a GBP50 billion valuation. However, the FT noted the regulator has faced calls to block the listing over allegations of forced labour in Shein's supply chain.
When asked whether issues like contested human rights records or suspicions of forced labour would prevent a UK listing, Rathi said the FCA's focus was on "disclosures around the legal risks that a company may be subject to".
The FCA has recently introduced several reforms aimed at increasing London's appeal for initial public offerings. Shein's London float, if approved, could mark a significant move for the UK's financial market amid efforts to attract high-profile listings.
Shein, which is working with Goldman Sachs, JPMorgan and Morgan Stanley on its listing plans, had planned to go public in New York but veered towards London after getting caught up in tensions between the US and China, the FT also reported back in June.
Last month, The Times reported Shein is sizing up a London stock market float early next year.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights reserved.