The FSA hosts seminar on future UK Listing Authority role

In his introduction to the seminar, Michael Foot (FSA Managing Director and Head of Supervision) said:

"The UK Listing Authority role fits well with the FSAs other responsibilities, particularly the need to protect consumers and maintain confidence in UK markets. But we also recognise the need to maintain a differentiated approach and culture to reflect the differences between listed companies and FSA regulated firms.

"The FSAs approach to the transfer is, as far as possible, business as usual. We intend to ensure a smooth transfer of the Exchanges Listing Department over the coming months with as little disruption as possible. Following the transfer, we will maintain the flexibility and efficiency of the listing procedures so that the London market retains its reputation for cost-effective capital raising. Todays seminar is a reflection of the importance we attach to consultation with a wide range of stakeholders."

The seminar was jointly chaired by Matthew Elderfield (Head of Exchanges and Clearing Houses, FSA) and Paul Geradine (Head of Listing, LSE) and attended by representatives from more than 50 firms and trade associations.

Christopher Smith (Chairman, Listing Authority Advisory Committee and Partner, Cazenove) commented on the transfer from a practitioners perspective. He said:

"We will give the FSA every possible support during this period of transition to make the process of change as smooth as possible. Ideally, our ultimate constituency, the listed companies, should be conscious of as little change as possible. The ultimate aim of everyone is that London should continue as the pre-eminent financial centre in Europe and the Listing Authority function should provide an effective and flexible environment for the development of the best trading market in Europe."

The FSA will be publishing a consultation paper on its approach to the UK Listing Authority role later this month. This will invite comments on a number of issues, including the mechanics of the listing process and the interaction of the listing function with the FSAs other activities. In addition, the FSA will review the arrangements for company announcements following the Governments decision yesterday that the Regulatory News Service (RNS) will remain with the LSE and that the Listing Rules would no longer require companies to submit announcements to the Company Announcements Office for distribution under the RNS. A working group representing a cross-section of interested parties will be assembled to develop proposals in this area that will then be the subject of full consultation. It is expected that the present role for the RNS will continue for a short transitional period with any changes implemented subsequently.

The FSA is not seeking to make any significant changes to the existing Listing Rules and procedures until after the legal framework, in the Financial Services and Markets Bill, has been finalised next year. Draft Listing Rules to be published in conjunction with the consultation paper will be based substantially on the existing Yellow Book, in accordance with the principle of business as usual. The LSE will also be launching a parallel consultation process on the issues posed by the transfer, including a discussion of the Exchanges future rules on admission to trading.

Notes for editors

The Governments intention, as set out in the Financial Services and Markets Bill, is that the FSA should be a single statutory regulator of financial services business. The Bill received its Second Reading in the House of Commons on 28 June and is expected to become law during the first half of 2000.

The Chancellor announced on 4 October that, in the light of the LSEs proposal to demutualise, the UK Listing Authority function will transfer to the FSA.

The transfer highlights an underlying distinction between admission to listing and admission to trading. Following the transfer, the FSA will be responsible for admission to listing rules; the LSE will retain separate responsibilities for admission to trading.