UK’s Sunak to propose powers to block London stock listings on security grounds -FT

imageStock Markets15 minutes ago (May 25, 2021 04:36PM ET)

(C) Reuters. FILE PHOTO: Britain’s Chancellor of the Exchequer Rishi Sunak stands near a mask prop during a local election campaign visit to Northern School of Art in Hartlepool, Britain, April 30, 2021. REUTERS/Lee Smith/Pool

(Reuters) -UK Chancellor of the Exchequer Rishi Sunak is to set out plans for a tougher regime governing flotations on the London Stock Exchange, allowing listings of companies to be blocked on national security grounds as concerns mount about dirty money in British financial markets, the Financial Times reported on Tuesday.

Sunak will launch a consultation within the next fortnight setting out proposals, the report added, citing the Treasury.

“The UK’s reputation for clean, transparent markets makes it an attractive global financial centre. We are planning to bolster this by taking a targeted new power to block listings that pose a national security threat and will launch a consultation . . . in the coming months,” the report added, citing the treasury.

The UK treasury department did not immediately respond to Reuters request for comment.

The report comes after Sunak said earlier this year that Britain will modernise its listing rules to attract more high-growth company and blank cheque flotations.

Earlier in March, Britain’s financial regulator, the Financial Conduct Authority, said Britain will use its freedom from European Union rules to regulate markets flexibly and make the City of London even more attractive to global investors.

UK’s Sunak to propose powers to block London stock listings on security grounds -FT

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