Economic Secretary to the Treasury (): 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 is announcing its 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/economic-crime-plan-2019-to-2022-accessible-version(opens
in a new tab)
[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).
