The Economic Secretary to the Treasury (John Glen)
As part of the Government’s July 2019 Economic Crime Plan[1], the Treasury undertook to consider the case for a Government power to block listings[2] on UK financial markets on the grounds of national security. This work has concluded and indicates that there are possible scenarios in which a proposed listing may potentially give rise to national security concerns. Therefore, alongside today’s introduction of the National Security and Investment (NS&I) Bill, the Government are announcing their intention to bring forward a precautionary power to block listings on national security grounds.
In designing this power, the Government will take full account of the fact that companies from all over the world come to the UK, as a world-leading financial centre, in order to raise capital. They are attracted by the depth, breadth and openness of our markets as well as London’s reputation for clean and transparent markets. This power will reinforce that reputation and help us maintain London’s status as a world-class listings destination. The Treasury will publish a full consultation to inform the design of the power, which we expect to launch in early 2021. Further information will be set out in the consultation document.
[1] https://www.gov.uk/government/publications/economic-crime-plan-2019-to-2022/economiccrime-plan-2019-to-2022-accessible-version.
[2] When a company wants to raise capital, it can do this through “listing” its securities on a public market, such as the London Stock Exchange (LSE).
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