UK Hits Same Snags As SEC With Reverse-Merger Rules

Law360, New York (October 3, 2012, 6:33 PM EDT) -- U.K. financial regulators said Tuesday they would place new barriers on foreign companies that use reverse mergers to list on London exchanges, but experts say the anti-fraud rules will suffer the same issues that have plagued a U.S. crackdown.

The new measures by the Financial Services Authority are designed to raise barriers for private, foreign companies seeking to go public on a domestic exchange by merging with an already-listed shell firm. They echo similar measures established last year by the U.S. Securities and Exchange Commission to protect...
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