UKLR 24.5 Supervision of sponsors

1. (1)

   1The FCA may, by notice in writing given to a sponsor, require it to provide specified documents or specified information to the FCA.

2. (2)

   The sponsor must, as soon as practicable, provide to the FCA 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 FCA in connection with the performance of its functions in relation to a sponsor or a person that has appointed a sponsor.

1The FCA may impose restrictions or limitations on the sponsor services a sponsor can provide at any time following the grant of a sponsor’s approval.

1A sponsor must pay the annual fee set out in FEES 4 in order to remain on the list of sponsors.

1A sponsor must provide to the FCA on or after the first business day of January each year but no later than the last business day of January each year:

1. (1)

   written confirmation that it continues to satisfy the criteria for approval as a sponsor as set out in UKLR 24.4.5R; and

2. (2)

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

1Written confirmation must be provided by submitting a completed Sponsor Annual Notification form to the FCA by electronic mail to the address specified by the sponsor’s usual supervisory contact at the FCA.

[Note: The Sponsor Annual Notification form can be found on the Primary Markets section of the FCA’s website.]

1A sponsor must notify the FCA in writing as soon as possible if:

1. (1)
   1. (a)

      the sponsor ceases to satisfy the criteria for approval as a sponsor set out in UKLR 24.4.5R or becomes aware of any matter which, in its reasonable opinion, would be relevant to the FCA in considering whether the sponsor continues to comply with UKLR 24.4.10R; or

   2. (b)

      the sponsor becomes aware of any fact or circumstance relating to the sponsor or any of its directors, partners or employees engaged in the provision of sponsor services by the sponsor which, in its reasonable opinion, would be likely to adversely affect market confidence in sponsors;

2. (2)

   the sponsor, or any of its directors, partners or employees engaged in the provision of sponsor services by the sponsor, 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;

3. (3)

   any of its directors, partners or employees engaged in the provision of sponsor services by the sponsor are 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;

4. (4)

   the sponsor, or any of its directors, partners or employees engaged in the provision of sponsor services by the sponsor, are subject to any public criticism, regulatory intervention or disciplinary action:

   1. (a)

      by the FCA;

   2. (b)

      by any UK RIE;

   3. (c)

      by any designated professional body;

   4. (d)

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

   5. (e)

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

5. (5)

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

6. (6)

   the sponsor changes its name;

7. (7)

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

8. (8)

   it identifies or otherwise becomes aware of any material deficiency in the sponsor’s systems and controls;

9. (9)

   there is intended to be a change of control of the sponsor, any restructuring of the sponsor’s group, or a re-organisation of or a substantial change to the directors, partners or employees engaged in the provision of sponsor services by the sponsor; or

10. (10)

    there is expected to be a change in the financial position of the sponsor or any of its group companies that would be likely to adversely affect the sponsor’s ability to perform sponsor services or otherwise comply with UKLR 24.

1Where a sponsor is of the opinion that, notwithstanding the circumstances giving rise to a notification obligation under UKLR 24.5.12R, it continues to satisfy the ongoing criteria for approval as a sponsor in accordance with UKLR 24.4.10R, it must include in its notification to the FCA a statement to that effect and the basis for its opinion.

1A sponsor must not delegate any of its functions as such, or permit another person to perform those functions.

1A 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;

4. (4)

   a signed confirmation that the sponsor will not provide any sponsor services as of the date the request is submitted to the FCA; and

5. (5)

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

1A request by a sponsor for its approval as a sponsor to be suspended 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 suspension to take effect;

4. (4)

   a signed confirmation that the sponsor will not provide any sponsor services as of the date the request is submitted to the FCA; and

5. (5)

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