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
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
"We propose to extend...