The FSA consults on listing authority role and announces senoir appointment

Michael Foot, FSA Managing Director and Head of Supervision, said:

"I am delighted that Paul Geradine will be joining the FSA. He will bring invaluable experience of the listing function and make a major contribution to our aim of achieving a seamless transfer. In the longer term, this appointment will be important in getting the most out of the integration of our new and existing responsibilities."

The FSA is also issuing today a consultation paper setting out its proposed approach to its role as the UKLA. Draft Listing Rules are also being published today for consultation.

Michael Foot added:

"We have been working closely with the London Stock Exchange over the last two months and have made rapid progress in our preparations for the transfer of the Exchanges Listing Department. We are now in a position to set out our future approach to listing. The proposals in this paper are designed to provide continuity in the short term and ensure business as usual at the point of transfer next Spring.

We are also seeking preliminary views on some important issues for the future role of the UK Listing Authority. In a world of multiple exchanges offering trading facilities in the same securities we need to debate the appropriate balance between the minimum listing rules and the admission and disclosure standards set by exchanges. We will be considering how best to facilitate competition between exchanges and ensure greater choice, and ease of listing, for companies. At the same time, we must not lose sight of the need to ensure adequate investor protection. We will be undertaking further consultation on these broader issues following the transfer."

The consultation paper addresses a number of issues, including:

• Transfer practicalities: the transfer is planned to occur in April or early May 2000. About 75 members of the LSEs Listing Department will transfer to the FSA and continue, for the time being, to be based in the City;

• Listing Rules: the FSA is consulting on its proposed Listing Rules, which substantially reflect all of the existing Yellow Book. The FSA expects to continue the existing UKLA advisory bodies;

• Dissemination of price sensitive information: a working party comprising a cross-section of interested parties is being assembled to develop proposals for a new approach to the dissemination of price sensitive information that will then be the subject of full consultation;

• Electronic filing of documentation: the FSA proposes to move to electronic filing of prospectuses and on-going information as early as possible;

• Enforcement policy: the basis of, and approach to, the enforcement of the listing rules will remain unchanged upon the transfer;

• Listing fees: the FSA does not anticipate any material change to the structure or level of fees for 2000/01.

Comments on the consultation paper and draft Listing Rules are invited by 18 February 2000.

Notes for editors

1. 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 is expected to become law during the first half of 2000.

2. 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 Economic Secretary announced on 7 December that, other than for a short transitional period following the transfer, the listing rules will no longer require companies to submit announcements to the Company Announcements Office for distribution under the Regulatory News Service (RNS). The FSA has been asked to develop proposals in this area that will then be the subject of full consultation.

3. The FSA and the LSE jointly hosted a pre-consultative seminar on 8 December attended by over 50 representatives from firms and industry bodies (see FSA Press Release FSA/PN/127/99).

4. The LSE currently carries out the two roles of UK Listing Authority and Recognised Investment Exchange in admitting securities to listing. The transfer will result in these roles being separated. The UKLA will admit securities to the Official List within the framework of EU Directives, and the LSE, and other RIEs, will admit securities to trading.

5. Consultation Paper 37 The Transfer of the UK Listing Authority to the FSA is available priced 10 by sending a cheque payable to the FSA to the FSAs Sales and Distribution Department. Alternatively the Consultation Paper and draft Listing Rules can be found on the FSAs Website.