H.M. TREASURY NEWS RELEASE

HM Treasury News Release

144/99

10th September 1999

AGREEMENT ON INTERNATIONAL FINANCIAL REGULATORY CO-OPERATION WITH TURKEY

Better communication and exchange of information between national financial regulators will help protect investors in cross-border dealings involving UK and Turkish investments, Economic Secretary Melanie Johnson said today.

Announcing the eighth such bilateral agreement to be reached, Miss Johnson said;

"I welcome this Memorandum of Understanding on international regulatory co-operation between the UK and Turkey. The agreement, between the Treasury, the Financial Services Authority, the London Stock Exchange, and the Capital Markets Board of Turkey, will help in the process of protecting investors in our two countries.

"This will add to the existing agreements with the US, Australian, Swiss, Hong Kong, Japanese, Chinese, Russian, and EU authorities in enhancing the attractiveness of the City of London as a major financial centre dealing with counterparts around the world and encouraging more Turkish companies to list in London.

"This agreement will seek to protect investors and promote the integrity of financial markets by providing a framework of co-operation between regulatory authorities.

"This framework will provide clear channels of communication, enhance mutual understanding, and allow the regulatory authorities to provide each other with investigative assistance and exchange confidential regulatory information.

"This should assist the enforcement of laws, rules, and regulations in the field of securities, and help tackle any insider dealing, market manipulation, or other fraudulent and deceptive practices."

NOTES FOR EDITORS

1. Under the Financial Services Act 1986, HM Treasury is responsible for handling requests for assistance from overseas regulatory authorities. With the increasing globalisation of financial markets, regulatory authorities in different countries need to work ever more closely with each other in order to combat breaches of rules, regulations, and laws.

2. Co-operation normally involves the exchange of confidential regulatory information concerning market transactions. This would include information on who has done which deals with who and at what time. Co-operation may also extend to investigating on behalf of an overseas regulatory authority.

3. In the UK, this information would normally be held or obtained by the Financial Services Authority. London Stock Exchange is the UK's competent authority for stock exchange listing. The Department of Trade and Industry is also able to provide some assistance using its powers under the Companies Act.

4. Six Turkish companies have already listed on the London Stock Exchange, raising a total of US$700m. Turnover in Turkish equities on the Exchange's markets amounted to US$14 billion in 1998.

5. The Capital Markets Board of Turkey is able to provide broadly equivalent types of assistance to the UK authorities. Securities market activity in Turkey is on the incline, and our Memorandum of Understanding should help reduce the uncertainties of such cross-border securities market activity.

6. Bilateral Memoranda of Understanding are not required between EU Member States in order to provide for mutual assistance. Outside the EU, the UK regulatory authorities currently have in force bilateral Memoranda of Understanding with the US, Australian, Swiss, Hong Kong, Japanese, Chinese, and Russian authorities.

7. Media enquiries should be addressed to Charles Keseru in the Treasury press office on 0171 270 5188 or Jeremy Hughes in the London Stock Exchange press office on 0171 797 1395.

8. If you have access to the Internet, you can find this news release and other Treasury information at www.hm-treasury.gov.uk