PracticeAccounting FirmsLSE and Deloitte row over foreign UK listings

LSE and Deloitte row over foreign UK listings

A row has erupted between LSE and Deloitte over foreign listings in the UK

The
London Stock
Exchange
has disputed findings in a research report released by
Deloitte,
raising concerns about the financial strength of foreign companies issuing
global depositary receipts in the UK. The LSE claim the study contains a number
of inaccuracies and misleading statements.

The Deloitte study noted a third of overseas firms issuing GDRs in London
last year, admitted to having weak financial controls, although ‘there is a
worryingly common misconception that GDRs are governed in the same manner as the
primary listings’, The Daily Telegraph reports.

The LSE said GDRs traded on its main market were obliged to follow the rules
for EU-regulated markets, which included compliance with the transparency
directive by producing half-yearly audited financial reports.

An LSE spokesman said the facts were ‘quite straightforward’. ‘The Financial
Services Authority requires full disclosure of all major risk factors in the
prospectuses of GDR issuers as in the case of any other issuer,’ he said.

Further reading:

Listing rules overhaul floated by FSA

Read
the story in The Daily Telegraph

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