Sponsor Competence Review Under Listing Rules

On 30 January 2013, the Financial Conduct Authority (FCA) published a consultation paper relating to proposed changes to the definition of "competence" under the Listing Rules in the context of sponsor approval.  The proposals aim to increase the transparency of the sponsor regime, reflect the changes to the FCA's statutory powers and enable appropriate sanctions.

Under the proposals, sponsors will be required to demonstrate that they have recent experience of providing sponsor services, generally by submission of sponsor declarations every three years.  For new applicants, the FCA would look through the applicant firm to the experience of its employees.

Sponsors will be expected to staff sponsor functions with sufficient employees who meet key competencies, which are to be assessed by reference to a competence framework to be adopted by the sponsor.  The FCA has proposed that the competence framework be required to contain, as a minimum, five proposed "competency