Aramco list­ing plan in line with UK pol­icy

Gulf News - - BUSINESS -

The Fi­nan­cial Con­duct Au­thor­ity said its pro­pos­als for list­ing state­con­trolled com­pa­nies such as Saudi Aramco were in line with Bri­tain’s aim of Lon­don re­main­ing a lead­ing fi­nan­cial cen­tre, rais­ing con­cerns about whether they were ro­bust enough.

The FCA in July pro­posed the new list­ing cat­e­gory in a move seen as help­ing Lon­don to court the ini­tial pub­lic of­fer­ing of Aramco, which is likely to be the largest ever IPO. The oil gi­ant is also look­ing at ri­val fi­nan­cial cen­tre New York.

The watch­dog has not is­sued any fi­nal rules, but law­mak­ers and Bri­tain’s lead­ing trade body for the in­vest­ment industry worry the pro­posed changes would not give in­vestors enough pro­tec­tion.

In a let­ter to par­lia­ment’s Trea­sury and Busi­ness Com­mit­tees, FCA Chief Ex­ec­u­tive Andrew Bai­ley said the pro­pos­als were con­sis­tent with the fi­nance min­istry’s rec­om­men­da­tions to the watch­dog in March.

“The rec­om­men­da­tions in­clude the point that Lon­don re­tain­ing its po­si­tion as the lead­ing in­ter­na­tional fi­nan­cial cen­tre sup­ports the aim of sus­tain­able eco­nomic growth,” Bai­ley said.

“Those rec­om­men­da­tions had been dis­cussed with Trea­sury.”

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