December 3, 2014 / 6:51 PM / 5 years ago

Regulatory snag hits plans by Romania's Fondul for London listing

LONDON, Dec 3 (Reuters) - Plans by Romanian investment fund Fondul Proprietatea to launch its secondary listing in London in early December have been derailed, as Romania’s regulator did not approve the plan, the fund’s manager told Reuters on Wednesday.

Bucharest set up the fund in 2005 to compensate Romanians whose properties were seized under communism. It holds minority stakes in a number of state-owned firms — some of which are unlisted — and is managed by Franklin Templeton.

Preparations to list the vehicle on London’s Specialist Fund Market have been underway for some time and the fund’s manager Greg Konieczny had originally said in April he hoped for a listing in September or October. Fondul will need fresh permission from shareholders if the launch is delayed to 2015.

“Unfortunately, the Romanian Financial Supervisory Authority (FSA) has failed to approve a new regulation that would have enabled Fondul Proprietatea, a 3.2 billion closed-end fund, to proceed with its secondary listing on the London Stock Exchange,” Templeton said in an email.

“Franklin Templeton Investments, the fund manager of Fondul Proprietatea, has formally requested clarifications from the FSA as to the reasoning for not having approved this regulation.

“The fund manager remains committed to respecting the shareholders’ desire to have the fund listed in London, and will present its updated recommendations on this in due course.” (Reporting by Karin Strohecker; writing by Matthias Williams)

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