§ Mr. TimmsTo ask the Chancellor of the Exchequer if he will make a statement on the future of the London Stock Exchange's role as the competent authority for listing. [28633]
804W
§ Mr. DarlingThe London Stock Exchange (LSE) is currently, under the Financial Services Act 1986, the competent authority for listing in the United Kingdom. I have considered future arrangements against the background of our decision to have a single statutory regulator, the Financial Services Authority, for financial services.
I have concluded that the case for change at this stage is not made. The LSE is operating satisfactorily in creating and enforcing listing rules in a way which gives confidence to investors, while meeting the commercial needs of users. Before any change were made we would need to be sure that this was fully justified on the balance of the arguments, and that arrangements for satisfactory transition were in place.
Accordingly this will be a matter kept under review. Among the factors which may be relevant to any decision to transfer functions could be the institutional arrangements for tackling market abuse and the impact of increased competition in the UK's securities markets.
The new Bill to reform the 1986 Act will therefore name the LSE as competent authority. However, I also intend that the Bill will include a power for the Treasury to transfer the competent authority functions, in part or in whole, to another body by secondary legislation.