LR 8.7 Supervision of sponsors

1. (1)

   5The FSA may by notice in writing given to a sponsor, or a person applying for approval as a sponsor, require it to provide specified documents or specified information to the FSA.

2. (2)

   The sponsor, or the person applying for approval as a sponsor, must as soon as practicable provide to the FSA any documents or information that it has been required to provide under (1).

3. (3)

   This rule applies only to documents or information reasonably required by the FSA in connection with the performance of its functions in relation to a sponsor, a person applying for approval as a sponsor or a company that has appointed a sponsor.

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 or after the first business day of January in each year but no later than the last business day of January in each year:7

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; and5

2. (1A)

   for each of the criteria in that rule, detailsof the basis upon which it considers that it meets the criteria.5

3. (2)

   [deleted]5

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4. (3)

   [deleted]5

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5. (4)

   [deleted]5

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7Written confirmation must be provided by submitting a completed Sponsor Annual Notification Form to the FSA at the FSA's address.

[Note: The Sponsor Annual Notification Form can be found on the UKLA section of the FSA's website.]

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 who provide sponsor services,5 are:

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   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 who providesponsor services5are 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

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4. (4)

   the sponsor, or any of its employees who provide sponsor services,5 are subject to any public criticism, regulatory intervention or disciplinary action:

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   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)

   [deleted]5

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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 8.6.17 R 5 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

1. (1)

   Each time a sponsor is appointed to act as a sponsor as required by the listing rules it must complete a Conflicts Declaration. 5

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2. (2)

   The completed Conflicts Declaration5 must be submitted to the FSA at the same time as any documents in connection with a transaction are first submitted to the FSA.

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[Note: The Conflicts Declaration5form can be found on the UKLA section of the FSA's website.]

If, after submitting a Conflicts Declaration5 but prior to the day of approval of the prospectus, listing particulars5,6 circular or announcement6, a sponsor becomes aware that it is no longer able to comply with LR 8.3.9 R or LR 8.3.11 R,5 it must notify the FSA immediately. Details 5 must be confirmed promptly 5to the FSA in writing.

On the day of approval of the prospectus, listing particulars5,6 circular or announcement6:

1. (1)

   a written confirmation that there has been no material change to the Conflicts Declaration;5or

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2. (2)

   an updated Conflicts Declaration5 reflecting any and all changes;

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must be submitted to the FSA.

A sponsor must5 not delegate any of its functions as such, or permit another person to perform those functions, unless that 5 person is 5on the list of sponsors.

1. (1)

   A sponsor that delegates any of its functions or permits another sponsor to perform its functions5 is not relieved of its obligations under the listing rules.

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2. (2)

   A sponsor that performs any function on behalf of 5another sponsor must comply with the requirements set out in LR 8.3.

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A sponsor must notify the FSA in writing as soon as practicable before another sponsor performs functions on its behalf 5of:

1. (1)

   the identity of that sponsor;5 and

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2. (2)

   a detailed description of the functions that the sponsor is to perform on its behalf.5

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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.