The British Government Aims to Limit Stock Listings Due to National Security

The Government of the United Kingdom intends to expand its powers to regulate the London Stock Exchange (LSE) and prohibit the listing of companies whose activities may pose a threat to national security, writes the Financial Times (FT), citing representatives from the Treasury.

The newspaper states that Chancellor of the Exchequer Rishi Sunak, in order to combat "dirty money" in British financial markets, seeks to obtain powers that would allow him to prevent the listing of companies for security reasons.

Currently, decisions on listings are made by a special unit within the Financial Conduct Authority, which is independent of the government. According to the newspaper, the British National Security Council, which includes government members and representatives of security forces, should also consider the admission of a number of companies to the LSE.

The Financial Times believes that such a proposal from the British Treasury is a result of dissatisfaction among many parliamentarians that current rules allow companies to be listed on the London Stock Exchange, including those owned by businesspeople who have amassed wealth through dubious dealings.

– The reputation of the United Kingdom as a country with a transparent and clear market makes it an attractive global financial center. We plan to strengthen that image by expanding powers to block listings if they pose a threat to national security – stated the Treasury in a statement.

The newspaper emphasizes that British authorities are seriously concerned about the current LSE rules after the company EN + of Russian entrepreneur Oleg Deripaska entered the stock market in November 2017.

However, the Financial Times also notes that the business community in the United Kingdom warns that a ban on company listings could harm the UK’s image as a private business destination.

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