Question to the HM Treasury:

To ask the Mr Chancellor of the Exchequer, what steps she is taking to ensure that funds raised by foreign companies through initial public offerings in London do not finance companies under US and EU sanctions; and if she will make a statement.

The Financial Conduct Authority (FCA) is the competent authority responsible for the UK initial public offering (IPO) process. Companies seeking to admit securities to the Official List must apply to the UK Listing Authority (UKLA), a division of the Financial Conduct Authority.

The UKLA is responsible for assessing the eligibility of any potential issuer and approving the prospectus of any company that wishes to list its securities on the London Stock Exchange. The UKLA can request advice from the Office of Financial Sanctions (OFSI), which is part of HM Treasury, in relation to UN, UK or EU sanctions but responsibility for the admission of companies to the Official List lies with the UKLA.

OFSI assesses all reported suspected breaches of UN, EU or UK financial sanctions to determine whether a breach has occurred and if so, the extent of any breach before taking action. OFSI refers the most serious cases to the National Crime Agency ("NCA") for criminal investigation.

The Office of Foreign Assets Control (OFAC) of the US Treasury Department enforces US economic and trade sanctions. OFSI regularly engages with OFAC on financial sanctions but OFSI has no role in ensuring compliance with or enforcement with US sanctions.