SFC paper signals changes to sponsors’ regime in Hong Kong

In May 2012, Hong Kong’s Securities and Futures Commission (SFC) issued a consultation paper inviting public comment on proposals to enhance the regulatory regime for sponsors’ conduct and proposed legislative amendments on sponsors’ prospectus liability. In December 2012, the SFC published the consultation conclusions.

With effect from 1 October 2013, a new paragraph 17 will be added to the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. The new provisions seek to consolidate the key obligations required of sponsors in an initial public offering (IPO) or new listing context. Any sponsor that submits a listing application (A1) on or after 1 October 2013 has to comply with the new provisions, and the SFC encourages sponsors to follow the new provisions as soon as practicable before that date.

Corresponding and other changes will also be made to the Corporate Finance Adviser Code of Conduct and the Additional Fit and Proper Guidelines for Corporations and Authorised Financial Institutions applying or continuing to act as sponsors and compliance advisers on the same date.