LR 8.7 Supervision of sponsors

A sponsor must pay the annual fee set out in 1FEES 41 in order to remain on the list of sponsors.

A sponsor must provide to the FSA on an annual basis:

1. (1)

   written confirmation that it continues to satisfy the criteria for approval as a sponsor as set out in LR 8.6.5 R;

2. (2)

   an up to date list of employees that are suitably experienced on whom the sponsor can rely to demonstrate that it satisfies the criteria set out in LR 8.6.5 R;

3. (3)

   for each employee whose name is on the list maintained by the sponsor under LR 8.6.15 R, details of the transactions on which the employee has acted in the previous 12 months; and

4. (4)

   a list of transactions on which the sponsor was appointed as agent under LR 8.7.16 R, if applicable.

A sponsor must notify the FSA in writing as soon as possible if:

1. (1)

   the sponsor ceases to satisfy the criteria for approval as a sponsor set out in LR 8.6.5 R; or

2. (2)

   the sponsor, or any of its employees whose names are on the list maintained by the sponsor under LR 8.6.15 R, are:

   1. (a)

      convicted of any offence involving fraud, theft or other dishonesty; or

   2. (b)

      the subject of a bankruptcy proceeding, a receiving order or an administration order; or

3. (3)

   any of its employees whose names are on the list maintained by the sponsor under LR 8.6.15 Rare disqualified by a court from acting as a director of a company or from acting in a management capacity or conducting the affairs of any company; or

4. (4)

   the sponsor, or any of its employees whose names are on the list maintained by the sponsor under LR 8.6.15 R, are subject to any public criticism, regulatory intervention or disciplinary action:

   1. (a)

      by the FSA; or

   2. (b)

      by any designated professional body; or

   3. (c)

      by any body that is comparable to the FSA or a designated professional body; or

   4. (d)

      under any comparable legislation in any jurisdiction outside the United Kingdom; or

5. (5)

   the sponsor resigns or is dismissed by a listed company or applicant, giving details of any relevant facts or circumstances;

6. (6)

   the sponsor changes its name; or

7. (7)

   the list of employees that are suitably experienced to enable the sponsor to demonstrate that it satisfies the criteria set out in LR 8.6.5 R is amended, either because an employee is added to or is removed from the list; or

8. (8)

   a listed company or applicant denies the sponsor access to documents or information that have been the subject of a reasonable request by the sponsor; or

9. (9)

   a review carried out under LR 8.6.14 G reveals any material deficiencies in the sponsor's systems and controls; or2

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10. (10)

    there is a change of control of the sponsor, or the sponsor's group carries out any restructuring, which results in a re-organisation of the directors, partners or employees involved in providing services as a sponsor.2

Each time a sponsor is appointed to act for a listed company or applicant as required by the listing rules it must inform the FSA as soon as possible of the name of the suitably experienced employee, whose name appears on the list described in LR 8.6.15 R8.7.8A, who has been appointed by the sponsor to liaise with the FSA.

1. (1)

   Each time a sponsor is appointed to act as a sponsor as required by the listing rules it must complete a Confirmation of Independence.

2. (2)

   The completed Confirmation of Independence must be submitted to the FSA at the same time as any documents in connection with a transaction are first submitted to the FSA.

[Note: The Confirmation of Independenceform can be found on the UKLA section of the FSA's website.]

If, after submitting a Confirmation of Independence but prior to the day of approval of the prospectus or circular, a sponsor becomes aware that it is not independent of the listed company or applicant or the transaction, it must notify the FSA immediately. The details of the lack of independence must be confirmed to the FSA in writing.

On the day of approval of the prospectus or circular:

1. (1)

   a written confirmation that there has been no material change to the Confirmation of Independence;or

2. (2)

   an updated Confirmation of Independence reflecting any and all changes;

must be submitted to the FSA.

A sponsor may not delegate any of its functions as such, except to another person on the list of sponsors.

1. (1)

   A sponsor that delegates any of its functions under LR 8.7.16 R is not relieved of its obligations under the listing rules.

2. (2)

   A sponsor that has been appointed as an agent by another sponsor under LR 8.7.16 R must comply with the requirements set out in LR 8.3.

A sponsor must notify the FSA in writing of:

1. (1)

   the identity of any delegate appointed under LR 8.7.16 R; and

2. (2)

   a detailed description of the scope of any delegation made under LR 8.7.16 R.

If the FSA considers that a sponsor has breached any provision of the listing rules and considers it appropriate to impose a sanction it will publish a statement censuring the sponsor.

A request by a sponsor for its approval as a sponsor to be cancelled must be in writing and must include:

1. (1)

   the sponsor's name;

2. (2)

   a clear explanation of the background and reasons for the request;

3. (3)

   the date on which the sponsor requests the cancellation to take effect;

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4. (4)

   a signed confirmation that the sponsor will not participate in any services described in LR 8.2 as of the date the request is submitted to the FSA; and

5. (5)

   the name and contact details of the person at the sponsor with whom the FSA should liaise with in relation to the request.