You can hardly blame Wise’s shareholders for their decision on Monday. In fact, you could say the overwhelming majority who backed the company’s move to the US are simply being… well… wise.
We all knew it was coming, but now it’s official: the divorce papers are in the post, with one of the UK’s most cherished fintechs heading off to a more exciting, sexier partner - one that promises to make it richer, more loved, and far better understood than the spurned LSE.
It’s an all-too-familiar break-up, and unless the government, the London Stock Exchange and regulators take urgent action, this embarrassing trend will only accelerate.
So how did we get here?
Our stock market - once the envy of the world - is now increasingly viewed with indifference. Companies seeking serious valuations, streamlined listing rules, deep pools of capital and a booming retail investor base are making for the exit.
In Wise’s case, it was the UK’s rigid approach to governance structures that helped seal the deal. The firm’s dual‑class share structure, which gave founder CEO Kristo Käärmann outsized voting rights, made it ineligible for FTSE 100 inclusion, limiting access to institutional capital. This made the US decision a fairly simple one. When regulation meant to protect investors ends up driving away high-growth firms, we need to ask who those rules are really serving.
That said, if England’s Lionesses taught us anything over the past few weeks, it’s that it’s rarely too late to turn things around. But platitudes won’t cut it. We need to completely rethink the approach.
The most obvious open goal - and own goal, depending on how you look at it - is stamp duty on UK share trading. It’s a counterproductive tax on the very behaviour we claim to want: people buying and holding UK-listed companies. There’s no equivalent in the US, and it’s widening the gulf between our markets. Scrapping it would be the clearest signal yet that we’re serious about competing for listings and capital. Research from Oxera suggests it could also boost UK GDP by as much as £5 billion a year.
We must also put ISA reform back on the table. While the building societies - desperate to protect their cheap source of deposits - may have won round one of the Cash ISA debate, the Chancellor must stick to her original guns, and arguably go further. Halting new Cash ISA openings and redirecting that tax relief to stocks would inject new life into equity markets and align with the government’s message on embracing risk. Add a UK equity incentive, such as income tax relief for holding British stocks in an ISA for several years, and we could meaningfully shift capital toward our most innovative, high-growth firms. It’s not just about nudging behaviour; it’s about building a culture of long-term ownership. Crucially, it could be paid for by scrapping a product that’s no longer fit for purpose.
We also need to revisit how firms are allowed to speak about investing - something, encouragingly, on the government’s radar. Current rules mean consumers are far more likely to be warned about losing money than told about long-term benefits. Rachel Reeves is right to address this, but reforms must go beyond tweaks. Let’s make it normal to highlight how markets consistently outperform cash over time or that cash, in real terms, almost always loses value. If we want a revolution in investor behaviour, we need a revolution in how we talk about it.
While the Mansion House proposals felt a long way from revolutionary, the current saga with Revolut might sharpen minds. The tug-of-war between the Chancellor and the Bank of England over the firm’s banking authorisation shows just how high the stakes are. If Revolut chooses to follow Wise and list in the US, it would be a devastating blow and a clear signal the UK is losing its grip on the companies of the future.
This is no time for half-measures. An industry ad campaign and a review of risk warnings won’t cut it. We need real reform - bold, structural change that rewires the rules, removes pointless penalties, and rewards people for backing British companies.
The message from Wise’s shareholders couldn’t be clearer. Now it’s up to the UK to respond.
Michael Healy is UK Managing Director, IG Group
