LSE boss Julia Hoggett: Capital markets are seen as something that ‘enables bankers to drive Lamborghinis’

The chief executive of the London Stock Exchange said that the UK’s capital markets need to change their image from being something that “enables bankers to drive Lamborghinis” to something that helps companies grow.

Making the comments at an event organised by think-tanks Atlantic Council and New Financial about the future of UK financial services, Julia Hoggett said that London’s exchange needs to make sure that “those who have brilliant ideas” can “start great companies here, grow them here, scale them here and ensure they stay here”.

“That creates jobs, it creates products, it creates innovation and creates tax revenue. It creates pension assets that mean our pensioners don’t die in poverty,” she said. “We don’t talk about the capital markets like that. We don’t talk about the capital markets as actually something that every single person in this country should care passionately about. We talk about them as something that enables bankers to drive Lamborghinis. And that has to change.”

READ Make post-Brexit rules more competitive for City banks, government told

After a bumper year for initial public offerings in the UK last year, there has been a broad slump so far in 2022. There were 12 IPOs on the main market that raised £308m during the first three months of the year, according to data from consultancy EY. At the same point last year, 12 IPOs on the main market and two on the Alternative Investment Market raised a combined £5.6bn.

The UK could raise an additional $75bn through regulatory reforms and greater ties with the US, a report from the think-tanks published on 28 April said.

“It shouldn’t be the hardest thing a founder of a company does to get the financing for their company,” Hoggett said. “The hardest thing should be coming up with a good idea and then running the business. And we need to transform and think about what regulatory changes for, by framing that ultimate objective. I think if we do that better, it will engage the public.”

To contact the author of this story with feedback or news, email Paul Clarke

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