2017年-FCA英国金融行为监管局_ukla_tn_712_2_additional_powers_to_supervise_and_discipline_sponsors_3页_117kb

Regulator Assessment Summary: UKLA/TN/712.2 - Additional Powers to Supervise and Discipline Sponsors

Core Content

This document outlines the FCA's assessment of the regulatory provisions related to the supervision and discipline of sponsors under the UKLA/TN/712.2 proposal. The FCA, as the lead regulator, issued this guidance in March 2017 to clarify its rules and enhance understanding among sponsors regarding their obligations and the FCA's powers.

Main Points

• Objective of the Guidance: To provide clarity on the FCA's interpretation of the Listing Rules, Prospectus Rules, Disclosure Guidelines, and Transparency Rules, specifically regarding the powers available to supervise and discipline sponsors.

• Statutory Powers of the FCA:

  • Under section 88 of FSMA and Chapter 9 of the Listing Rules, the FCA has the authority to:
    • Restrict or limit the services a sponsor can perform, both before and after approval.
    • Suspend a sponsor's approval or impose limitations or restrictions.
    • Fine, suspend, restrict, or limit a sponsor's activity for up to 12 months.
    • Publicly censure a sponsor if it contravenes the rules.

• Sponsor Role: Sponsors are approved firms that advise premium listed companies on their obligations under the listing regime and provide assurances to the FCA. They play a key role in ensuring compliance with regulatory requirements.

• Competition Law Powers (CA98):

  • Since 1 April 2015, the FCA has had competition law powers under the Competition Act 1998 (CA98).
  • In certain situations, the FCA must give primacy to CA98 enforcement over its section 88E powers.
  • This means the FCA must first consider whether to use CA98 before applying section 88E powers.

• Guidance Update:

  • The procedural note PN 910.1, originally published in August 2014, was updated in March 2017.
  • The update includes references to the CA98 primacy obligation and minor drafting amendments.

Key Information

• Implementation Date: March 2017
• Duration of Policy: 10 years (from 2017)
• Price Base Year: 2017
• Business Net Present Value: -0.002
• Net Cost to Business (EANDCB): £0
• BIT Score: 0

Impact on Business

• Affected Businesses: The guidance applies only to sponsors.
• Number of Sponsors: There are 41 approved sponsors, including investment banks, corporate advisory firms, accounting firms, and legal firms.
• Estimated Cost:
  • The guidance note is 5 pages long.
  • It is estimated that each sponsor will spend up to 1 hour to read, understand, and disseminate the guidance to relevant staff.
  • At a rate of £48/hour, the total estimated cost for all 41 sponsors is approximately £2000.
• Cost Assumptions:
  • Based on the Robert Half salary guide, the estimated rate of £48/hour is considered prudent.
  • The cost estimate assumes that the changes do not alter the procedures that sponsors must follow, only that they are now aware of the FCA's potential use of CA98 powers.

Summary of Benefits

• Clarity and Transparency: The updated guidance enhances understanding of the FCA's powers and how they may be applied.
• Regulatory Compliance: Sponsors are better informed about their responsibilities and the potential consequences of non-compliance.
• Operational Efficiency: The FCA aims to exercise its functions as transparently as possible, which may reduce the frequency and complexity of disciplinary actions.

Additional Information for BIT Score Validation

• The guidance does not change the procedures that sponsors must follow.
• The changes are informational in nature, aimed at improving clarity and transparency.
• The FCA's use of CA98 powers is a statutory requirement and does not impose additional costs on sponsors.
• The estimated cost of £2000 is based on the assumption that sponsors will take the time to review and disseminate the updated guidance, which is relatively rare and does not significantly affect operations.