LSE agree resolution with OFT
27 November 2003 - 12:00PM
UK Regulatory
RNS Number:5631S
London Stock Exchange Plc
27 November 2003
London Stock Exchange plc agrees resolution with Office of Fair Trading on
Issuer Services' tariffs
The London Stock Exchange announces today that it has agreed undertakings with
the Office of Fair Trading ("OFT") leading to Issuer Services' tariff reductions
for companies with equity shares listed on the London Stock Exchange's UK Main
Market and quoted on AIM. These undertakings have been agreed following the
OFT's investigation into the increases in the Exchange's Issuer Services'
tariffs introduced in 2002.
The agreed undertakings provide for the following changes to Issuer Services'
tariffs:
* An average of more than 25 per cent reduction in annual tariffs for all
UK Main Market companies as set out in the attachment;
* A reduction in AIM annual tariffs to a flat fee of #4,000 per annum;
and
* A reduction in AIM admission tariffs to a flat fee of #4,000 per
company.
The change in pricing is to be implemented as part of the Exchange's current
pricing review for Issuer Services and will take effect from 1 April 2004. It
is estimated that if these tariffs had been in effect during the financial year
ended 31 March 2003, the reduction in Issuer Services' revenue would have been
around #5.8 million.
The Exchange has also agreed that any future increases in Issuer Services'
tariffs will be limited to increases in the Office of National Statistics
Service Sector Wages index. This undertaking will be reviewed in April 2007.
Commenting on the agreement, Martin Wheatley, Deputy Chief Executive of the
Exchange, said:
"Whilst the Exchange does not agree with the OFT's conclusions, it believes the
swift and definitive resolution to this matter is in the best interests of
customers and shareholders."
Ends
Further information is available from:
London Stock Exchange
John Wallace - Media 020 7797 1222
Paul Froud - Investor Relations 020 7797 3322
Ruth Anagnos - Investor Relations 020 7797 3322
New Tariff for UK Main Market
Bands Proposed tariff Current tariff Reduction
From To Maximum Maximum Maximum
#m #m # # #
0 2 3,375 5,125 1,750
2 5 3,375 5,125 1,750
5 10 3,375 5,125 1,750
10 25 3,375 5,125 1,750
25 50 3,375 5,510 2,135
50 100 3,881 6,280 2,399
100 250 5,400 8,590 3,190
250 500 7,931 12,440 4,509
500 1000 16,369 20,140 3,771
1000 2000 33,244 35,540 2,296
2000 2500 33,244 43,240 9,996
2500 33,244 43,240 9,996
This information is provided by RNS
The company news service from the London Stock Exchange
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