Following consultation, the Financial Conduct Authority (FCA) has retained the joint sponsor regime with only minor changes.
On 26 March 2015, the FCA published PS15/7 (Policy Statement) a feedback and policy statement on its consultation on joint sponsor arrangements contained in Consultation Paper 14/21 which was published in January 2014 (Consultation Paper).
The Policy Statement affects:
- premium listed issuers or issuers considering a premium listing of their securities;
- firms and sponsors advising the issuers of premium listed securities;
- firms or persons investing in or dealing in premium listed securities; and
- those responsible for submitting a prospectus to the FCA for approval.
The FCA has proceeded with the related changes to LR 8 which were set out in the Consultation Paper. LR 8 has therefore been amended to:
- provide that if a company appoints joint sponsors under LR 8.5.3R, the requirement for only one sponsor to take responsibility for contact with the FCA in respect of the sponsor service applies in respect of administrative arrangements only;
- insert new guidance in relation to joint sponsors co-operating with each other in relation to the sponsor service, including establishing arrangements for the sharing of information (new LR 8.3.15G); and
- make consequential changes to LR 8.3.14R (principles for sponsors: joint sponsors).
The Policy Statement also includes the final form of a new UKLA technical note, entitled, "Sponsors: Joint Sponsors – communications with the FCA" (UKLA/TN/716.1). The technical note provides guidance in relation to communications between the FCA and joint sponsors and is in materially the same form as the draft set out in the Consultation Paper.
The changes to LR 8 and the new technical note took effect on 1 April 2015.
The Policy Statement can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
