The US will make "changes" to the burdensome financial and corporate governance requirements that are driving companies out of US markets, Alan Greenspan, former chairman of the US Federal Reserve, predicted yesterday.

Mr Greenspan initially supported the passage of the Sarbanes-Oxley law -the landmark 2002 legislation that was introduced following the Enron and WorldCom corporate scandals - but said yesterday he was "disturbed" when companies started favouring London over New York as the market for their flotations.

"The Sarbanes-Oxley act has created significant problems for investors with its regulatory structure," he said during a question and answer session at the Asian Financial Centres conference in Seoul, organised by the Financial Times.

"I am nevertheless acutely aware and disturbed by the fact that initial public offerings have moved away from the US - and to a large extent have moved to London," he added.

Although the basis of the law was a definite advance in terms of governance, some parts of it created too many burdens for business, he said, emphasising the provision that forces companies to have their internal controls certified by auditors.

"My impression is that there will be changes," said Mr Greenspan, who retired as Fed chairman in January.

The London Stock Exchange has taken advantage of the US regulatory environment in its pitch to attract Asian listings.

However, Rudy Giuliani, the former mayor of New York who also addressed the conference, said he thought that London and Tokyo would eventually adopt similarly tough regulations. - (Financial Times Service)