SEC Proposal May Drive Foreign Listings Back to European Exchanges

European equities edged higher alongside Gold prices as market participants weighed a potential regulatory shift in the United States. The SEC's proposed amendment targeting Foreign Private Issuer (FPI) status could compel dozens of multinational firms to establish secondary listings outside American markets.

The rule change WOULD close what regulators view as a growing oversight gap. Many foreign-listed companies currently avoid rigorous U.S. disclosure requirements through FPI exemptions. "This could inadvertently stimulate the London markets," noted Robert Newman of DLA Piper, whose team advises corporations on listing strategies.

Companies like Arm and Spotify may need to pursue dual listings in financial hubs such as London to maintain their FPI benefits. The proposal reflects regulatory concerns that overseas firms no longer maintain equivalent disclosure standards in their home jurisdictions—a founding assumption of the original FPI framework.