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The City watchdog has set the stage for approval of Shein’s controversial £50bn IPO.
Nikhil Rathi, chief executive of the Financial Conduct Authority (FCA), said listing decisions are based on companies’ disclosures and not “all aspects of their corporate behaviour”.
This will be a blow to human rights groups who are pressuring the FCA to reject the Chinese fast fashion retailer’s IPO, planned for next year, amid concerns about its supply chain.
“What parliament has not asked us to do is to be a broad regulator of all aspects of corporate behavior and of all companies listed in the UK, around the world,” Rathi told the Financial Times.
Complaints: Revolut boss Nikolay Storonsky (pictured) said the UK market was “much worse” than its US counterpart.
He gave the example of London-listed miners, who “face legal difficulties in many different parts of the world.”
Shein faces accusations that forced labor from China’s Xinjiang region is used to make the cotton for its garments. It insists it has a “zero tolerance” approach to forced labor.
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