Questor share tip: LSE should benefit from diversification policy Not so long ago this would have posed a serious threat to the group's full-year profits but, thanks to a programme of diversification led by chief executive Xavier Rolet, the future remains bright for the LSE. The company's decision to diversify away from cash equities has impressed investors, pushing the group's shares up a healthy 22pc so far this year. Like most financial services providers, the LSE faces regulatory challenges with new European capital rules threatening to impact the business. On the other hand, regulation forcing all "over-the-counter" derivatives on to exchanges and clearing houses with benefit LCH. The LSE remains on course to improve its revenues, profits and dividends over the next few years despite tough market conditions. The group's shares currently yield a solid 2.9pc and Mr Rolet's impressive tenure as chief executive indicate that the company is in safe hands. The LSE remains a buy for any ambitious investor.