London's Plans To Restrict Foreign Securities On LSE Violate Open Market - Russian Embassy

LONDON (UrduPoint News / Sputnik - 15th June, 2019) The UK initiative to restrict admission of foreign securities to the London Stock Exchange (LSE) as part of the national sanction policy instruments is contrary to the open market principles, the press secretary of the Russian Embassy in London said Friday.

According to local media, the UK Parliament is considering the initiative to limit the placement of foreign securities on the LSE and vest the government with the powers to ban stock of certain foreign issuers. Decisions related to the admission of securities to the LSE are currently within the competence of the UK financial market regulator Financial Conduct Authority (FCA).

"Indeed, such an idea is contained in a report of the House of Commons' Foreign Affairs Committee as one of the instruments of the national sanctions policy after UK's withdrawal from the European Union.

Although there are no specific details yet, as far as we understand, we can talk about a conceptual change in the rules for admission of foreign securities to the UK stock markets ... To what extent this administrative innovation corresponds to the principles of the free market is a rhetorical question," the press secretary told reporters.

According to him, the goal of this initiative is to legitimize the right of the UK government to intervene directly in the financial market under the pretext of protecting national security.

"In fact, the initiative envisions that the government could prohibit the placement of securities of a company [on the LSE] at the instructions of special services," the press secretary noted.

This step could have far-reaching consequences, especially amid active development of alternative global trading platforms, the press secretary added.