Press releases 2008

FSA Discussion Should Help Modernise Listings Rules

The London Stock Exchange today described the FSA’s discussion paper on the structure of the listing regime as a timely opportunity to bring the Listing Rules up to date with existing market practice, and for the FSA to set out more clearly its role with respect to each Main Market segment.

Adam Kinsley, Director of Regulation, said:

“This discussion paper is an important opportunity for the FSA to update the terminology and labels used to describe the different listing routes available to companies in London. In a growing market it is crucial for investors to be able to identify the regulatory standards that apply, as well as who is applying them.

"The market has always valued the fact that there are different routes to listing on the Main Market. We are pleased to see FSA recognise the benefits that this choice brings, fitting the needs of investors with different risk appetites, and playing a key part in London's success in attracting international companies to our markets.”

In particular, the Exchange supports the FSA’s proposal to review the requirements for non-UK companies choosing a Primary Listing in London and align them more closely with the criteria applied by FTSE for inclusion in the FTSE UK Index Series:

• Combined Code - it is proposed that international companies seeking a Primary Listing be required to abide by the same ‘comply or explain’ requirements as UK companies
• Pre-emption rights – it is proposed that the rules for a Primary Listing require international companies to adopt an equivalent pre-emption rights regime to that followed by UK companies under UK company law.

The Exchange will respond to the discussion paper in full in due course.

Notes to editors

1. There are currently 324 international trading companies on the London Stock Exchange’s Main Market. Of these, 67are Primary Listed International trading companies admitted to trading on the Main Market, of which 23 are included in the FTSE All-Share index.
2. Since FTSE’s Nationality Practice Note was introduced in May 2007, a further nine Primary Listed international companies have been included in the FTSE UK Index Series. The Practice Note provides the following guidance: “For inclusion in the FTSE UK index series, a company not incorporated in the UK will be required to acknowledge publicly adherence to the principles of the UK Combined Code, Pre-emption Rights and the UK Takeover Code as far as practical”.

For further information, please contact:

Patrick Humphris / Catherine Mattison Press Office +44 (0)20 7797 1222

newsroom@londonstockexchange.com