FCA row over Saudi oil

The head of Britain’s City watchdog met Saudi Arabia’s oil giant before publishing watered down rules that would allow a £1.5trillion share sale.

Andrew Bailey, chief executive of the Financial Conduct Authority, admitted to MPs that he met with Gulf state-owned Saudi Aramco earlier this year.

The FCA later published controversial plans to create a new category of company – owned by another country – which can list on the UK stock market.

Various countries want Saudi Aramco to list on their stock market as it promised to be the world’s biggest flotation.

But critics say the FCA’s rule change will damage London’s reputation for protecting shareholders.

Nicky Morgan, the Tory chair of the Treasury Select Committee, said “questions remain about the level of political involvement in the consultation”.

Stephen Martin, director general of the Institute of Directors, said: “We see no overwhelming reason to believe that states should be treated differently to other controlling shareholders.”