30 July 2004

In May 2004, the FSA proposed an amendment to the Listing Rules that would require companies to obtain shareholder approval before the cancellation of listing. In the light of speculation about the timing of any such change, the FSA is today clarifying the position.

The consultation period for the proposed amendment has just closed and it is therefore too early to say how that feedback will inform the FSA Boards' final decision and the drafting of any proposed rule. If such a rule were to be introduced, the internal rule making processes mean that it is unlikely that it would take effect much earlier than the end of the year.

We are considering whether transitional arrangements are appropriate for any companies that had already announced that they planned to de-list but had not actually de-listed before the rule took effect. However, at this stage we are unable to comment in any more detail on the proposed rule changes and associated transitional arrangements or how they might effect individual companies.

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