Neither the Financial Services Authority (FSA) nor the US Securities and Exchange Commission (SEC) consider that US ownership of the London Stock Exchange (LSE) would lead to companies on the UK exchange becoming subject to US regulation, said Callum McCarthy, FSA chairman.
Should the UK exchange receive an offer from an entity such as Nasdaq, the US exchange holding 25.1% of the LSE, the FSA would expect a statement to be made making clear whether the suitor’s proposals may bring London-listed companies under US law and regulation, said McCarthy.
However, he said, if a combined group seeks greater harmonisation of listing and membership requirements, the regulatory issues faced by both jurisdictions would become more complicated and require greater consideration.
McCarthy added that moves by a combined entity to rationalise its regulatory structure could result in the LSE’s services being provided from outside the UK, in which case there would be the potential for the LSE to fall outside the scope of UK regulation.
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