However, LAPFF argued that governance standards should instead be strengthened to protect investor interests and the UK economy.
The pensions group said: “In lobbying to lower the governance and listing regime the LSE not only risks loss of its reputation, but also ‘poisoning the well’ making the UK an unfavourable place to allocate capital.”
LAPFF urged the LSE to publicly release any evidence it had regarding any link between the UK’s listing rules resulting in fewer listings or less investment, Reuters first reported.
It claimed the industry taskforce had not examined delistings caused by insolvencies and accounting issues, such as Middle Eastern hospital operator NMC Health and collapsed construction giant Carillion.
The pensions giant also suggested that London’s struggle to attract new listings isn’t a problem unique to the UK, pointing to reports that US listings have nearly halved in the past two decades.
LAPFF’s members own a 1.5pc stake in LSEG, making the group one of the stock exchange’s top investors.
Last year, CMIT also called for Jeremy Hunt to introduce sweeping pension reforms to revive investment in the City to break the “vicious cycle” of Britain’s stock market decline.
The Chancellor has since announced plans to consolidate Britain’s smaller pension schemes into fewer superfunds, which would have the financial firepower to take more risks and invest in high-growth assets.
CMIT is reportedly in the process of devising an “elevator pitch” report summarising why businesses should still be listed in the City.
The London Stock Exchange was contacted for comment.
Mark Dixon, the chief executive of shared workspace provider IWG, suggested the levying of stamp duty on shares in the UK could be holding back British markets.
Mr Dixon said: “I do hear that the stamp duty on shares is an impediment. It doesn’t stop people from investing, but it doesn’t help.
“Other stock exchanges don’t have this tax. We’ve got more and more US investors. And quite a few of them hold [shares] in swaps because of stamp duty.”
IWG has recently switched its reporting currency to dollars and said it was considering adopting US accounting rules, fuelling speculation that the company may move its listing from London to the US, its biggest market.