Rishi Sunak to propose new powers to block London listings over security fears
Chancellor Rishi Sunak is set to propose new powers which will enable companies to be prevented from listing on London’s financial markets over security concerns.
Sunak will launch a consultation on the plan in the next two weeks as the government tries to crack down on “dirty money” in London’s financial bodies.
A Treasury spokesperson confirmed the plan, saying: “The UK’s reputation for clean, transparent markets makes it an attractive global financial centre.
“We’re planning to bolster this by taking a targeted new power to block listings that pose a national security risk, and will launch a consultation to inform its design in the coming months.”
Under proposals advanced by the consultation, ministers would be able to block a float if it gave a company access to state or commercial secrets, The FT first reported.
The proposals were first mooted in a 2019 Treasury brief called the “Economic Crime Plan”.
Such powers would be the second time in six months that the government has taken legislative steps to crack down on foreign access to the UK’s corporate landscape.
Last month the new National Security and Investment bill was signed into law, having had its first reading in November.
That act will give the government further powers to investigate and intervene in potentially hostile foreign direct investment.