Jurisdiction - Hong Kong
Hong Kong – Regulation Of Sponsors.

19 Juy, 2012


Legal News & Analysis – Asia Pacific – Hong Kong – Capital Markets


Against a background where Hong Kong has been the world’s leading IPO center for the third year in a row, the SFC has published its much-anticipated consultation paper on the regulation of sponsors. Aimed at improving the quality of listings in Hong Kong, the SFC’s proposals concern the conduct of sponsors in connection with new listings and seek to provide a regulatory basis for defining the expected quality of sponsor work.

The first part of the consultation paper relates to the SFC’s licensing regime for sponsors, with the SFC proposing to consolidate all key sponsor obligations in a new paragraph 17 in the Code of Conduct for Persons Licensed by or Registered with the SFC (Code of Conduct). The second part of the consultation paper relates to the legal liability of sponsors under the Companies Ordinance.
For a summary of the key proposals in the consultation paper, please click here.
The consultation period ends on July 31, 2012, and interested parties are encouraged to submit their comments in writing to the SFC. The SFC has stated that there is no definite timetable in place for implementing the proposed regulatory changes should they be adopted. In addition, any revisions to the prospectus liability provisions of the Companies Ordinance would be subject to further consultation with the Hong Kong government and would need to go through the normal legislative process, so they would be on a slower timetable than 
potential revisions to the Code of Conduct and the Listing Rules.
For a copy of the consultation paper, please visit the link: http://www.sfc.hk/sfc/doc/EN/speeches/public/consult/06/conclusions_
For a copy of the Morrison & Foerster Sponsors’ Milestones guide, please follow the link: 


For further information, please contact:
Venantius Tan, Partner, Morrison & Foerster

Morrison & Foerster Capital Markets Practice Profile in Hong Kong



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