The continuing obligations for Sponsors are closely linked to the activities they conduct. There are specific responsibilities connected to Introducing and Continuing Activities, in addition to general responsibilities which apply regardless of activity. The table below features the key responsibilities of Sponsors.
Introducing Activities
Continuing Activities
Ensure suitability of issuer to list
Advise & prepare an issuer to list (SIBA due diligence guidelines, advice directors on responsibilities, adequate systems/procedures for rule compliance, etc)
Understand the issuer thoroughly
Advise on other professionals
Sign on Sponsor Declaration
Review & endorse all announcements & circulars
Ensure issuer has internal processes and knowledge to comply with rules
Advise on rule compliance, corporate governance, etc
Interface with Exchange
- Monitor trading
- Whistleblow
General
Responsiblities
Maintain eligibility
Sufficient systems and resources
Ensure independence
SGX will review the performance and procedures of the Sponsors to ascertain the quality of their work against the standards set in the rules. This will take place chiefly through regular audits. To assist SGX in its review, Sponsors must submit annual returns in the prescribed form within 90 days from their financial year-end.
As Sponsors and their Registered Professionals will be playing critical roles in Catalist, they will be subject to disciplinary action when they breach the rules. The process for taking disciplinary action mirrors that found in the other disciplinary rules which apply to the SGXs trading and other members.
A Disciplinary Committee comprising relevant external professionals are empowered to impose one or more of the following sanctions in the event a Sponsor or its Registered Professionals breaches the Catalist rules.
Reprimand
Fines
Restrictions or conditions on activities
Suspension
Revocation of authorization (Sponsors) or deregistration (Registered Professionals)
Undertake educational program
Rules for Sponsors – Full details of the admission and continuing requirements for Sponsors are in the Catalist rules, which can be found here.
