LONDON, Sept 18 (Reuters) - Britain's markets watchdog
opened the door to cannabis company listings on Friday by
setting out how it would navigate laws to prevent pocketing
proceeds from criminal use of the drug.
The Financial Conduct Authority set out its "approach" to
cannabis-related companies interested in a UK listing, pending
public consultation on more formal guidance in due course.
The legalisation of cannabis, including for recreational use
in Canada and a number of U.S. states, fuelled a speculative
"green rush" on Toronto and New York stock markets last year,
with analysts expecting some listings in Europe in 2020.
The FCA said that while medicinal cannabis was legalised in
Britain in 2018, investment in overseas licensed medicial
cannabis companies remains a legally complex area, with a risk
of triggering broadly-defined British law that prevent financial
gain from criminal activity.
Proceeds from recreational cannabis companies, even when
located in countries that have legalised it, are proceeds of
crime under the law, it said.
"We can't assume a person who has been licensed in an
overseas country would receive a licence here in the UK as
licensing regimes differ globally," the FCA said.
"UK-based medicinal cannabis companies can be admitted to
the Official List, if the company has the appropriate Home
Office licences for their activities where they are required,"
it added.
The FCA said overseas-licensed medicinal cannabis companies
and cannabis oil companies could list in Britain if the proceeds
of crime law does not apply, and they meet listing criteria.
(Reporting by Huw Jones, editing by Louise Heavens)