On 30 January 2014, the FCA published a consultation paper on proposed amendments to the Listing Rules in relation to sponsor competence and other amendments to the Listing Rules and Prospectus Rules.
As the FCA believes that sponsors play a crucial role in guiding premium listing issuers and providing investors with confidence in the integrity and effectiveness of the premium listing regime, its proposed amendments seek to clarify its expectation of sponsors and the criteria for their approval. Proposed amendments include requiring sponsors to submit a sponsor declaration to the FCA and establishing key competencies which a sponsor is required to demonstrate in order to be competent.
The consultation paper also contains questions for market participants on joint sponsor arrangements. It also contains some proposals not related to sponsors. These comprise removing the Listing Rule requirement for a premium listed issuer to prepare a circular updating working capital statements produced by it in connection with class 1 circulars following the completion of the acquisition, 28 days after the acquisition. It is also proposing to introduce new Prospectus Rules which impose discrete obligations on an applicant to submit a compliant and factually accurate prospectus.
Responses to the consultation are requested by 30 April 2014. The FCA intends to publish its feedback in the last quarter of 2014.
The consultation paper is available at: http://www.fca.org.uk/static/documents/consultation-papers/cp14-02.pdf
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