Our supervision of sponsors is distinct from our supervision of authorised firms. We focus on ensuring sponsors fulfil their responsibilities under the listing regime.
A sponsor need not be authorised by the FCA – but most are. Our supervision of sponsors is distinct from our supervision of firms as authorised entities.
In supervising sponsors, our Sponsor Supervision Team works closely with other parts of the FCA — including other supervisory areas, Market Monitoring, Enforcement — and external regulatory bodies, such as AIM Regulation and The Takeover Panel.
We use various tools to monitor whether or not a sponsor continues to satisfy our criteria for sponsor approval set out in LR8.6.5R and stays compliant with all applicable listing rules.
We allocate each sponsor a relationship manager, who acts as the firm’s contact point for all matters regarding Chapter 8 of the Listing Rules (LR8). The relationship manager reviews the firm’s annual notification, assesses a sponsor’s performance on transactions, and deals with questions about conflicts of interest and any other ad hoc issues that arise.
Each January, in line with LR8.7.7R, a sponsor must send us confirmation that it continues to satisfy the criteria for approval as a sponsor set out in LR8.6.5R. The confirmation will also include details of how it considers that it meets each of the individual criteria for approval set out in the rule. All sponsors must do this by completing a sponsor annual notification form.
Our visits to sponsors
Our Sponsor Supervision team may make supervisory visits on a periodic and ad-hoc basis (LR8.7.3G). This may include reviewing potential or suspected breaches of the Listing Rules. If Sponsor Supervision intends to visit, we will give reasonable notice to request meetings and/or gain access to documents and records (LR8.7.4G).