Financial Services Authority to become UK's competent authority for listing announces Gordon Brown

Responsibility for the Competent Authority for Listing, which regulates access to and standards in the public equities markets, will be transferred from the London Stock Exchange to the Financial Services Authority next year the Chancellor, Gordon Brown, announced today.

The decision follows the London Stock Exchange's proposal to demutualise and turn itself into a commercial company.

Commenting, Gordon Brown said.

"The London Stock Exchange has done a very good job as the UK's Listing Authority and I would like to express my appreciation to the Exchange and the Listing Department staff for their work.

"But, in the light of its proposal to demutualise and turn itself into a commercial company, the Exchange has suggested that it would no longer be appropriate for it to continue to exercise its Listing Authority function. I share this view and accordingly I am planning that this function should be transferred to the Financial Services Authority.

"We will be bringing forward the necessary amendments to the Financial Services and Markets Bill to effect this transfer of responsibilities. We hope the Bill will be enacted by the Spring and the transfer will be made as soon as possible thereafter.

"The FSA, the London Stock Exchange and the Treasury will all be working together to ensure a smooth and seamless transition. I am confident that the FSA will ensure the Listing Authority responsibilities continue to be carried out efficiently and effectively, meeting the needs of issuers and investors alike."

Notes for editors

The Competent Authority for Listing is responsible for making the Listing Rules, which lay down the requirements which issuers of securities to the UK primary markets need to meet, and for policing compliance with these Rules. It is also responsible for admitting securities to the UK's Official List.

The London Stock Exchange has been the UK's Listing Authority since the concept was introduced into UK law in 1984. The Government announced last year that the Exchange would continue to perform this function and the Financial Services and Markets Bill therefore currently names the Exchange in this role. However, it was made clear that circumstances might arise where the Government would wish to transfer the responsibility.