U.K. Could Block Some London Listings on Security Grounds

(Bloomberg) -- U.K. Chancellor Rishi Sunak is set to propose powers to block companies from listing on the London Stock Exchange if they pose a national security threat.

He is set to launch a consultation on the plans in the coming months, the Treasury said Tuesday.

The move, first reported in the Financial Times, comes after concerns were raised that current rules allowed Russian oligarch Oleg Deripaska -- who is subject to sanctions in the U.S. -- to list his energy company EN+ in 2017.

The House of Commons Treasury committee said in 2019 that the listing was a “clear example of the risks inherent in the government’s fragmented approach to sanctions design and implementation.”

Decisions over the eligibility of companies to list on the LSE are currently made by an arm of the Financial Conduct Authority, but under Sunak’s plans, some potential listings could be referred to the National Security Council.

“The U.K.’s reputation for clean, transparent markets makes it an attractive global financial center,” the Treasury said in a statement. “We are planning to bolster this by taking a targeted new power to block listings that pose a national security threat.”

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