Mr Hall warned the UK market would become irrelevant unless urgent action was taken.
He said: “If we don’t do anything it will fade away.
“There are some relatively straightforward things the Government can do to change things pretty quickly. It could be done by changing the risk appetite for pension funds, which are now largely not invested in equities”.
Mr Hall said retail investors should also be encouraged to plough money into UK equities, which would drive up the price of shares and mean businesses make more money if they list in London.
A British ISA or changes to tax paid on shares could revive the appetite, he added,
Of the 40 companies acquired in the UK last year, only three were in the FTSE 250 – with the rest taking place in the Smallcap index and the junior stock market AIM.
Mr Hall also said the dynamic was leading to fewer new listings in London, as companies shied away from…
