Singapore needs sponsor due diligence best practice

Author: | Published: 10 Aug 2011

Singapore bankers counsel are calling for a regional best practice outline on sponsor due diligence processes.

The move aims to address lack of consistency in the due diligence approach of Singapore's issue managers.

It has, in part, been prompted by the Hong Kong Securities and Futures Commission’s (SFC) recent efforts to more closely monitor sponsor due diligence processes. It also follows the publication of the SFC’s March 2011 Sponsor Theme Report, which highlighted relevant regulatory requirements applicable to sponsors under the Hong Kong stock exchange’s (HKEx) Listing Rules.

Herbert Smith’s Singapore-based corporate counsel Siddhartha Sivaramakrishnan told IFLR that Singapore’s global banks are in internal discussions to ensure they are all on same page in terms of issue managers’ due...