Nicky Morgan and Rachel Reeves demand answers on Saudi Aramco listing

Here’s what they said 

Rt Hon. Nicky Morgan MP, Chair of the Treasury Committee, and Rachel Reeves MP, Chair of the Business, Energy and Industrial Strategy Committee, have written to Andrew Bailey, Chief Executive of the Financial Conduct Authority (FCA) about the FCA’s consultation on proposals to create a new category within its premium listing regime.

The new listing would cater for companies controlled by a shareholder that is a sovereign country. This has been widely reported as an attempt to encourage Saudi Aramco – Saudi Arabia’s national oil company – to choose London for its mooted flotation.

Commenting on the correspondence, Mrs Morgan said:

“The UK has a world-class reputation for upholding strong corporate governance. The FCA must protect this reputation, especially as the City looks to remain competitive and thrive post-Brexit.

“Any changes mustn’t dilute the protection afforded by the ‘premium listing’ brand.

“The issues raised in the FCA’s consultation will no doubt be examined by the Treasury Committee.”

Mrs Reeves said:

“The FCA’s consultation relating to its premium listing regime raises questions about the UK’s reputation for sound corporate governance.

“As we leave the European Union, it’s important the UK seizes new opportunities for business but it should not be at the expense of diminished corporate governance standards. Getting this balance right will be vital to the UK’s long-term future as a key financial centre and an attractive market-place place for investors.”