FCA chief admits to meeting Saudi Aramco over float plans
The head of Britain’s financial watchdog has admitted that he held talks with oil giant Saudi Aramco over a potential £1.5 trillion stock market flotation in London, as MPS warned over lax governance standards and political interference in the deal.
Andrew Bailey, chief execu- tive of the Financial Conduct Authority (FCA), said that discussions were held earlier this year amid a barrage of criticism over his proposals to change listing rules that would allow the Arab firm to plump for London over rival financial centres.
“We can confirm that we held conversations with Saudi Aramco and their advisers in light of their interest in a possible UK listing in the early part of this year. We emphasised during those conversations that we were reviewing the Listing Regime,” Bailey said in response to a letter from Nicky Morgan, chair of the influential Treasury select committee.
The rule change has drawn sharp criticism from big-hitting City institutions such as Royal London Asset Manage- ment, the Institute of Directors and the International Corporate Governance Network.
In defence of the FCA’S proposals, Bailey added: “We do not think protections for investors will be weakened.
“We have previously made clear publicly that we will permit lower percentages than 25 per cent, where the value and distribution is such that there can be a liquid market.”