Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to ensure that funds raised by foreign companies through initial public offerings in London do not finance companies under US and EU sanctions; and if he will make a statement.

Her Majesty’s Government (HMG) is committed to ensuring financial sanctions are effectively implemented and enforced throughout the UK. HMG also works closely with authorities around the world to help ensure compliance with international sanctions.

In its role as the UK Listing Authority (UKLA), The Financial Conduct Authority (FCA) is the competent authority for regulating listed companies and enforcing compliance with the UK listing regime. The FCA is responsible for assessing the eligibility of any potential issuer and approving the prospectuses published by issuers and offerors in advance of initial public offerings in London. Regulators, businesses and individuals can request advice from the Office of Financial Sanctions Implementation (OFSI), which is part of HM Treasury, in relation to UN, UK or EU sanctions but the decision as to whether a listing applicant and its business is suitable for listing on the London Stock Exchange is ultimately a matter for the FCA.

OFSI assess all reported suspected breaches of UN, EU or UK financial sanctions and takes robust action where appropriate.