Aramco listing plan in line with UK policy
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.”