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U.K. Could Block Some London Listings on Security Groun...

Business Maverick

Business Maverick

U.K. Could Block Some London Listings on Security Grounds

Rishi Sunak, U.K. chancellor of the exchequer, departs from number 11 Downing Street on his way to give an economic update to Parliament in London, U.K., on Wednesday, July 8, 2020. Sunak is set to unveil a 2 billion-pound ($2.5 billion) program to pay the wages of more than 200,000 young workers as he tries to pull the U.K. economy out of the deepest slump in centuries.
By Bloomberg
26 May 2021 0

U.K. Chancellor Rishi Sunak is set to propose powers to block companies from listing on the London Stock Exchange if they pose a national security threat.

The move, first reported in the Financial Times, comes after concerns were raised that current rules allowed Russian oligarch Oleg Deripaska — who is subject to sanctions in the U.S. — to list his energy company EN+ in 2017.

The House of Commons Treasury committee said in 2019 that the listing was a “clear example of the risks inherent in the government’s fragmented approach to sanctions design and implementation.”

Decisions over the eligibility of companies to list on the LSE are currently made by an arm of the Financial Conduct Authority, but under Sunak’s plans, some potential listings could be referred to the National Security Council.

“The U.K.’s reputation for clean, transparent markets makes it an attractive global financial center,” the Treasury said in a statement. “We are planning to bolster this by taking a targeted new power to block listings that pose a national security threat.”

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