Etoro chief: UK should do more if it wants us to float in London

UK-focused stock trading platform Etoro is currently deciding between whether to list in London or New York, but has called for the UK government to do more to empower capital markets.

“We’ve met the LSE, we talk to Nasdaq, we talk to everyone, and this process now of ‘where’ is happening,” Dan Moczulski, Etoro’s UK managing director, told City A.M.

Moczulski said that the listing of Etoro, which is headquartered in Israel, was “inevitable” in the next few years, as “if you’re encouraging people to invest, I think it’s healthy that you yourself are listed”.

The investment platform previously tried and failed to float on the Nasdaq through a SPAC in 2021, but abandoned the attempt, with Moczulski saying the company was ultimately “glad it didn’t complete”.

Now, with Etoro’s CEO Yoni Assia having said earlier this year that he was weighing up floating in the US, Moczulski said there were “a number of factors” being considered in the decision, such as valuations.

The London Stock Exchange recently made sweeping changes to its listing rules in a bid to revive the City’s attractiveness for floats, but this doesn’t seem to have swayed Etoro.

“I can’t tell you that the listing changes will impact where we decide to go,” said Moczulski.

“Going forward, I’d like the Labour government to recognise the opportunity that is inherent in UK capital markets, and saying [retail investing] is something we should be encouraging people to do.

“Whether it is the British ISA, the removal of stamp duty, just increasing the ISA limits, there is a number of things we can do to make that more relevant.”

Etoro would not be the first UK-focused company tempted across the pond, with several big names such as insurer Aspen, gambling group Flutter and commodity broker Marex being tempted by higher valuations and deeper pools of capital in the US.

The Etoro chief also made reference the “the capital gains allowance reducing over time”, which he said was failing to push people to invest for the future.

Lifting the levy on capital gains is seen as one of the most likely revenue raisers the Treasury will turn to at its budget in October. Officials have reportedly drawn up plans to bring the rate in line with income tax, bringing the highest rate from 20 per cent to 45 per cent.

Meanwhile, Chancellor Rachel Reeves also announced last month that the new Labour government had scrapped a scheme developed by the Conservatives to sell part of the Treasury’s remaining stake in Natwest to the general public, which came as part of broader measures to boost retail investment in the UK.

“It’s a shame about Natwest, we were one of the firms that was designated as an intermediary. We were quite excited to be involved with it, so it’s a shame that it’s not happened,” added Moczulski.