On December 12, 2012, the SFC published its Consultation Conclusions concerning the regulation of IPO sponsors in Hong Kong. The proposals, amongst other things, clarify that sponsors are subject to civil and criminal prospectus liability provisions and are intended to ensure that by the time a listing application is lodged, all reasonable due diligence work has been completed and all material information has been included in the draft prospectus filed with the listing application. The SFC’s proposals take effect on October 1, 2013, with the timing for amendments to legislation in Hong Kong to be determined separately. This memo describes the background to the changes, summarizes the main proposals and looks at the likely practical impact going forward.
