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LR 8.3 Role of a sponsor: general

Responsibilities of a sponsor

LR 8.3.1RRP

A1 sponsor must in relation to a sponsor service:1

1
  1. (1)

    referred to in LR 8.2.1 R, 1provide assurance to the FSA when required that the responsibilities of the listed company or applicant under the listing rules have been met; and

  2. (2)

    referred to in LR 8.2.1 R, LR 8.2.2 R or LR 8.2.3 R, 1guide the listed company or applicant in understanding and meeting its responsibilities under the listing rules anddisclosure rules and transparency rules.21

    12
LR 8.3.2GRP

The1 sponsor will be the main point of contact with the FSA for any matter referred to in LR 8.2.1 The FSA expects to discuss all issues relating to a transaction and any draft or final document directly with the sponsor. However, in appropriate circumstances, the FSA will communicate directly with the listed company or applicant.

11

Principles for sponsors: due care and skill

LR 8.3.3RRP

A sponsor must in relation to a sponsor service act with due care and skill.1

1

Principles for sponsors: duty regarding directors of listed companies

LR 8.3.4RRP

Where, in relation to a sponsor service,1 a sponsor gives any guidance or advice to a listed company or applicant on 1 the application or interpretation of the listing rules or disclosure rules and transparency rules2, the sponsor must take reasonable steps to satisfy itself that the director or directors of the listed company understand their responsibilities and obligations 1under the listing rules and disclosure rules and transparency rules.21

112112

Principles for sponsors: relations with the FSA

LR 8.3.5RRP

A sponsor must at all times (whether in relation to a sponsor service or otherwise):1

  1. (1)

    deal with the FSA in an open and co-operative way; and1

  2. (2)

    deal with all enquiries raised by the FSA promptly.1

    1
  3. (3)

    [deleted]1

    1
LR 8.3.5ARRP

1A sponsor must in relation to a sponsor service disclose to the FSA in a timely manner any material information relating to the sponsor or to a listed company or applicant of which it has knowledge which concerns non-compliance with the listing rules or disclosure rules and transparency rules2.

2
1
LR 8.3.6R
  1. (1)

    [deleted]1

  2. (2)

    [deleted]1

    1
  3. (3)

    [deleted]1

LR 8.3.7G
  1. (1)

    [deleted]1

  2. (2)

    [deleted]1

    1

Principles for sponsors: identifying and managing conflicts1

LR 8.3.7AGRP

1The purpose of LR 8.3.7B R to LR 8.3.12 G is to ensure that conflicts of interest do not adversely affect:

  1. (1)

    the ability of a sponsor to perform its functions properly under this chapter; or

  2. (2)

    market confidence in sponsors.

LR 8.3.7BRRP

1A sponsor must take all reasonable steps to identify conflicts of interest that could adversely affect its ability to perform its functions properly under this chapter.

LR 8.3.8GRP

1Conflicts to be identified include circumstances that could create a perception in the market that a sponsor may not be able to perform its functions properly.

LR 8.3.9RRP

1A sponsor must take all reasonable steps to put in place and maintain effective organisational and administrative arrangements that ensure conflicts of interest do not adversely affect its ability to perform its functions properly under this chapter.

LR 8.3.10GRP

1Disclosure of a conflict of interest will not usually be considered to be an effective organisational or administrative arrangement for the purpose of LR 8.3.9 R.

LR 8.3.11RRP

1If, in relation to a transaction, a sponsor is not reasonably satisfied that its organisational and administrative arrangements will ensure that a conflict of interest will not adversely affect its ability to perform its functions properly under this chapter, it must decline to provide sponsor services on the transaction.

LR 8.3.12GRP

1LR 8.3.11 R recognises that there will be some conflicts of interest that cannot be effectively managed. Providing sponsor services in those cases could adversely affect both a sponsor's ability to perform its functions and market confidence in the sponsor regime. If in doubt about whether a conflict can be effectively managed a sponsor should discuss the issue with the FSA before it decides if it can provide a sponsor service.

Principles for sponsors: acting for another sponsor1

LR 8.3.13G

1The requirements in this section apply to a sponsor that acts for another sponsor. The delegating sponsor is not relieved of its obligations under this section or elsewhere in LR 8.

[Note: See LR 8.7.16 R to LR 8.7.18 R which deal with delegation of functions.]

Principles for sponsors: joint sponsors

LR 8.3.14RRP

1If a listed company or applicant appoints more than one sponsor to provide sponsor services in relation to a transaction then:

  1. (1)

    the appointment does not relieve either of the appointed sponsors of their obligations under LR 8; and

  2. (2)

    the sponsors are each responsible for complying with the obligations under this section and elsewhere inLR 8 in relation to the transaction.