UPDATE 14 December 2011: FTSE has now announced the results of this consultation, as we discuss in this post.
Move follows investor concern that index-tracking funds are having to invest in companies with poor corporate governance standards
The FTSE Group (FTSE) yesterday announced that it is consulting on changing the requirements for UK-incorporated companies to be included in the FTSE UK Index Series (which includes the FTSE 100 and FTSE All-Share Index). At present, a UK-incorporated company is eligible for inclusion in these indices if it has a free float of at least 15% of its listed securities, or 5% in the case of companies with a full market capitalisation of $5 billion. (Non-UK companies need a free float of 50%.)