CP14/21: Feedback and Policy Statement on CP14/02, consultation on joint sponsors and call for views on sponsor conflicts

This document sets out our feedback and final rules in response to CP14/02: ‘Proposed amendments to the Listing Rules in relation to sponsor competence and other amendments to the Listing Rules and Prospectus Rules.’

We are also consulting on some proposals regarding joint sponsors and taking this opportunity to invite views from as wide a range of stakeholders as possible on whether the current rules and guidance on sponsor conflicts are appropriate and effective, and if we should consider any changes to these.

Feedback to CP14/02

In CP14/21 we set out the detail of our feedback to the responses and final rules in relation to sponsor competence.  The final rules will be effective from 1 October 2014, except those contained in LR8, LR11 and the definitions which will become effective on 1 February 2015.

We are also consulting on formal FCA guidance applicable to our proposals on sponsor competence.  This draft guidance is contained in two Technical Notes which form part of this consultation. 

Joint sponsors

We will be retaining the joint sponsor regime.  However, to reflect responses, we are consulting on certain changes to the listing rules and new Technical Note.  These proposals are designed to facilitate access to the FCA by all sponsors performing a joint sponsor role and ensure that there are arrangements in place between the joint sponsors to help them perform their role.

Views on sponsor conflicts

Although sponsor conflict management was not the subject of our consultation in responding to CP14/02 respondents did comment on the current approach to the identification and management of conflicts of interests in firms providing sponsor services, in particular, whether the current approach to conflicts appropriately protects the interest of investors. So we are taking this opportunity to set out some of the issues raised with us and to invite views from as wide a range of stakeholders as possible on whether the current rules and guidance on sponsor conflicts are appropriate and effective and if we should make any changes.  Any proposed changes to our rules would be the subject of a formal consultation later.

CP14/21: Feedback and Policy Statement on CP14/02, consultation on joint sponsors and call for views on sponsor conflicts.

Who will this interest?

This paper will interest:

  • premium listed issuers or issuers considering a premium listing of their securities
  • firms and sponsors advising issuers of premium listed securities
  • firms or persons investing in or dealing in premium listed securities
  • those responsible for submitting a prospectus to us for approval

Next steps

The consultation period in respect of our joint sponsor proposals including the proposed Technical Note in relation to joint sponsors and the call for views in relation to sponsor conflicts closes on 30 December 2014.  

Please send us your comments by closes on 30 December 2014 in writing or using the online response form on our website.  We expect to publish our feedback on the joint sponsors proposals in the second quarter of 2015. 

The consultation on the Technical Notes on sponsor competence will close on 7 November 2014 and we expect to have the final Notes published on the UKLA Knowledge Base available on 1 February 2015.

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