Encouraging a prolonged initiative to stimulate British citizens' investments once more, leaders at the London School of Economics advocate for such efforts.
Revised Article
With fears looming that the London Stock Exchange (LSE) is on a downward spiral, the LSE's chief Dame Julia Hoggett is urging for a new campaign to galvanize investment in the UK's struggling bourse. The idea behind this initiative is inspired by the successful "Tell Sid" advertisement launched in 1986, which encouraged the public to invest in British Gas following its privatization.
Hoggett admits that the UK's stock market hasn't reached its turning point yet in terms of drawing risk capital. She believes that investors are more anxious about investing in the real economy than they are in cryptocurrency, and that now is the perfect time for a long-term public campaign that demystifies investing.
This proposition was made during a conference hosted by the Capital Markets Industry Taskforce on Friday. The LSE has experienced a string of high-profile departures this year, with companies like fintech Wise, DS Smith, and Darktrace leaving for greener pastures.
Flutter, too, decided at the start of the year that listing on the US market would not only elevate its valuation but also enhance its chances of succeeding in its significant betting play across the Atlantic.
Hoggett's call for a "Tell Sid"-style campaign comes as concerns grow that the LSE might spiral into a 'doom-loop', with depressed valuations causing US companies to snap up cheap UK firms.
As it stands, only 25% of Brits invest in the stock market compared to 60% in the US. Sarah Pritchard, the deputy chief executive of the Financial Conduct Authority, agreed at the same conference that more companies listing is acceptable, even if some of them fail. Pritchard also hinted at upcoming proposals to help consumers manage their finances better.
Recent endeavors to stimulate investment in the UK's stock market have been multifaceted, aiming to modernize trading frameworks, attract capital inflows, and boost investor confidence—particularly in early-stage companies. Some key initiatives include:
- The UK Government's introduction of legislation to create PISCES (Private Intermittent Securities and Capital Exchange System), a new trading venue that bridges private and public markets, giving companies more control over their shares' trading policies, and fostering a positive cycle for early investors and employees to realize and reinvest value[1][4].
- The Financial Conduct Authority's rule adjustments to increase the share capital raise threshold for a prospectus from 20% to 75%, reduction aimed at easing regulatory burdens and encouraging more capital raising in the market[4].
- PISCES will commence as an FCA sandbox, signaling a progressive, experimental approach to market innovation[4].
- The London Stock Exchange Group (LSEG) continues to post strong operational performance, with a 7.8% increase in underlying revenue in Q1 2025. LSEG's focus on technology investments, such as cloud integration and partnerships, allows it to embed its data analytics into suites like Microsoft Excel and Teams, making their services indispensable to clients[5].
While there's no direct confirmation of a specific "Tell Sid"-styled campaign, innovative marketing or awareness campaigns similar in spirit could align with PISCES' goal of raising visibility and participation in UK equity markets[4]. In summary, a combination of regulatory reform, innovative trading venues like PISCES, and technology-driven services from key players like LSEG are the legs the UK stands on to attract capital, provide investors with more confidence, and offer opportunities to participate in growth sectors.
- Dame Julia Hoggett, the LSE's chief, is advocating for a new initiative inspired by the 1986 'Tell Sid' advertisement, aiming to encourage more investment in the UK's stock market.
- Hoggett expresses that the UK's economy and businesses could benefit from a long-term public campaign that demystifies investing, as she observes that investors are more hesitant about investing in the real economy compared to cryptocurrency.
- The London Stock Exchange (LSE) has experienced a series of high-profile departures this year, with companies like Wise, DS Smith, Darktrace, and Flutter listing on foreign markets instead.
- Sarah Pritchard, the deputy chief executive of the Financial Conduct Authority, supports the idea of more companies listing, even if some fail, and hints at proposals to help consumers manage their personal finance better.
