H.M. TREASURY

HM Treasury News Release

208/99

7 December 1999

REVIEW OF ARRANGEMENTS FOR DISSEMINATION
OF INFORMATION BY LISTED COMPANIES

Economic Secretary Melanie Johnson today announced that she had asked the Financial Services Authority to review the arrangements for the dissemination of price sensitive information to the public by officially listed companies. The review has been commissioned in the light of the proposed transfer of the UK Listing Authority function from the London Stock Exchange to the FSA.

Miss Johnson also announced that, other than for a short transitional period following the transfer, the Listing Rules would no longer require companies to submit announcements to the Exchange's Company Announcements Office for distribution under the Regulatory News Service.

In response to a Parliamentary Question from Jackie Lawrence (Preseli Pembrokeshire), Miss Johnson said:

"Listed companies are currently required under the Listing Rules to submit announcements to the Exchange's Company Announcements Office for distribution to the public through the Regulatory News Service. Although the Listing Rules do allow for simultaneous notification of announcements to other news organisations, we consider it would be inappropriate to retain this requirement other than for a transitional period when, subject to Parliament approving the necessary legislation, the FSA becomes the Competent Authority for listing.

"I have therefore asked the FSA to undertake a review of the arrangements for the dissemination of price sensitive information by listed companies and to come forward with amendments to the current Listing Rules requirements in this area. The FSA will be launching a consultation exercise with interested parties to devise alternative arrangements."

NOTES FOR EDITORS

1. The Chancellor announced on 4 October that, in the light of the London Stock Exchange's proposal to demutualise and turn itself into a commercial company, it had been decided to transfer its Listing Authority function to the FSA. Legislation to effect the transfer will be brought before Parliament in the New Year.

2. Media enquiries about the Treasury announcement should be directed to Charles Keseru at the Treasury press office on 0171 270 5188.

Media enquiries about the FSA review should be addressed to Andy Newton at the FSA press office on 0171 676 3232.

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