'No Sarbox threat to UK plcs'
FSA reassures listed companies over Sarbanes-Oxley threat
Companies listed on the London Stock Exchange will not have to comply with
Sarbanes-Oxley corporate governance rules and other US regulations, if the LSE
is taken over by an American exchange, the city’s financial watchdog has said.
These reassurances were given by Sir Callum McCarthy, chairman of the
Financial Services Authority, although he added that ‘theoretically’ any such
takeover in the longer term could lead to the LSE being subject to overseas
regulations if the market was operated from outside Britain, the Daily
Telegraph reported.
His comments follow the US Nasdaq exchange’s failed 950p-a-share offer for
the LSE earlier this year.
Sir Callum said US ownership could ‘at the extreme involve the LSE not being
subject to UK regulation.
‘If such a market were to be operated from the US it would require member
firms and issuers to be registered with the SEC and subject to its oversight,’
McCarthy added.