World Federation of Exchanges urges HM Treasury to avoid asset management reforms that weaken investor protections and UK public markets

The World Federation of Exchanges (WFE) submitted a response to HM Treasury’s consultation on asset management regulation, calling for a balanced approach that preserves investor protections and supports the long-term health of UK public markets. It cautioned that reforms intended to simplify the regime could inadvertently erode transparency and accountability or discourage companies from listing publicly. The response positions public markets as central to capital raising, price discovery and resilience, and argues that private markets also depend on public markets for exits via initial public offerings and for transparent price benchmarks. The WFE warned that changes that tilt the balance toward less regulated private markets could intensify existing capital market challenges, including a declining number of new listings, and called for a level playing field across private and public markets through adequate disclosure of material information, due diligence and investor protection.