Proposed amendments to the UK’s Financial Services Authority’s (FSA) Listing Rules will profoundly affect sponsors, if adopted in their current form.
The amendments, published last week, put forward a number changes to the sponsor regime. These include extending the circumstances when a sponsor will be required, to include smaller related party transactions, for example, and strengthening the rules for sponsor communications with the FSA.
The FSA put a lot of resources into examining the sponsor regime and the conduct of sponsors, both in terms of the communications sponsors have on transactions and also on requesting that they give a yearly confirmation to prove eligibility as a sponsor. The paper states:
“We propose to extend...