The Stock Exchange has amended the Listing Rules after considering the conclusions of the consultation on the regulation of sponsors and independent financial advisers.

The Stock Exchange and the Securities & Futures Commission jointly published a consultation conclusions report on the subject today.

The policy conclusions and rule amendments address, amongst other things:

* when an issuer must appoint a sponsor or post-listing adviser (to be known as compliance advisers);

* the role and responsibilities of issuers in assisting sponsors and compliance advisers;

* undertakings and declarations required to be given by sponsor and independent financial advisers firms to Stock Exchange;

* independence requirements for sponsors, compliance advisers and independent financial advisers; and,

* the roles and responsibilities of sponsors, compliance advisers and independent financial advisers including the due diligence Stock Exchange expects they should typically perform.

The report also describes initiatives for enhanced licensing criteria for those wishing to act as sponsors or independent financial advisers, which will be subject to further public consultation by the Securities & Futures Commission.

High expectations

HKEx's Head of Listing Richard Williams said the rule amendments make abundantly clear what the exchange and commission expect of sponsors, compliance advisers and independent financial advisers.

"Those expectations, whilst necessarily high, are subject to what is reasonable and appropriate in each set of unique circumstances," Mr Williams said.

The rule amendments should change the incentive structure for sponsorship work and provide a more even playing field. Firms not currently meeting the regulators' expectations will need to reassess their compliance arrangements and do more.

The market should be in no doubt that the exchange and commission will continue to co-operate to ensure failures to meet the standards are addressed promptly and effectively.