LSE warns on City threat

THE London Stock Exchange (LSE) yesterday made public its opposition to government proposals to merge the UK Listing Authority (UKLA) with the Financial Reporting Council (FRC) arguing the move would deny the City a voice in Europe, reduce the capital’s competitiveness and ultimately cost jobs.

“We care deeply about the competitiveness of the UK’s IPO market. Its regulation requires experience on a global scale, sophisticated real-time monitoring and response capabilities, and crucially, the ability to fight London’s corner in Europe,” said LSE chief executive Xavier Rolet.

One City insider said concerns were widespread that the move was political and reflected difficulties within the coalition government with the Department for Business, Innovation and Skills – which oversees the FRC – effectively grabbing power for business secretary Vince Cable.