The Securities & Futures Commission has launched today a two-month consultation on enhancing the regulatory regime of sponsors.
It proposes that sponsors should be reasonably satisfied that information in an initial public offering prospectus is true, accurate and complete. The sponsors should test information provided in the accountants’, valuers’ and other experts’ reports to ensure the prospectus is credible.
The commission suggests the sponsors should have civil and criminal liability for untrue statements, including material omissions in a prospectus.
Among the other suggestions, before submitting a listing application, the sponsors are required to complete the vast majority of due diligence. The sponsors should resolve key issues concerning the company's operation, governance and structure, and issues affecting the suitability for listing.
People may submit their comments by
e-mail to the SFC on or before July 6.
