On March 6, the UK Financial Services Authority (FSA) published consultation paper CP08/5 Sponsor regime – a targeted review with proposed amendments to the sponsor regime for UK listed companies.
UK companies with what are called “primary” listed equity securities or new applicants seeking a primary listing are required to appoint a sponsor.
Sponsors generally include investment banks and corporate finance firms with specialist knowledge of the UK Listing Rules and the London equity market.
The consultation sets out several key proposals which include clarifying the application of the principles for sponsors set out at Chapter 8 of the UK Listing Rules, introducing procedures for identifying and managing conflicts within sponsors and revising FSA guidance on appropriate systems and controls for sponsors.
The consultation closes June 6.