In IFLR Article, Akin Gump Lawyers Analyze UK Proposals to Block Equity Listings on National Security Grounds

IFLR has published the article “UK government proposes new power to block listings on national security grounds,” written by Akin Gump corporate partner Harry Keegan, counsel Daniel Lund and trainee solicitor Adam Parkins. The article, adapted from an Akin Gump client alert, examines the proposed scope and application of the U.K. government’s ability to intervene in the equity listing process.

The authors write that the UK government is currently consulting on the scope of the new power in response to “concerns raised in Parliament about the potential for the UK’s capital markets to be used to undermine national security.” If enacted, they say, the new power “would enable a more direct method of intervention in the listings process than has been seen in comparable jurisdictions, notably the US…[and] would bolster the UK’s existing legislative framework with a further safety net but hardly amounts to a groundbreaking advancement in addressing national security risks.”

The article then discusses the proposed power in greater detail. It also compares the U.K. approach with what other countries have tried to do “to prevent the trading in public securities of entities deemed to pose a risk to national security.”

Keegan, Lund and Parkins conclude that the new proposals “should prove effective in allowing the government to address the few cases in which a listing might undermine national security.” At the same time, they note, it remains to be seen “whether comparable jurisdictions will follow the UK’s lead.”

To read the client alert on which the article is based, please click here.