The Role of the Listing Sponsor on the International Securities Market (ISM)

 

The Role


A Listing Sponsor’s primary role is to conduct due diligence to ensure a company is fit for listing. Specifically, this will include:

  1. Providing the Issuer with fair and impartial advice on the interpretation and application of the General Listing Requirements (Rule 4400).
  2. Ensuring the directors and management understand the nature of the listing and accompanying responsibilities, and
  3. Ensuring that all relevant documents are filed with the Barbados Stock Exchange (BSE), thereby providing a detailed level of information on the activities and financial position of the Issuer.

The Listing Sponsor is responsible thereafter for the issuer’s continued compliance throughout the duration of the listing. Listing Sponsors are the liaison entities between the Issuer and the BSE.

 

Who Qualifies


Accountants, attorneys, members of the local brokerage community and other service providers are ideally suited to act as “Listing Sponsors” on the International Securities Market (ISM). This opportunity is further extended to current and prospective international offshore banks, international business entities, and international securities dealers.

 

Regulatory Requirements


All Listing Sponsors are regulated by the ISM Listing Rules (Series 6000). To be approved by the Exchange as a listing sponsor, an applicant must:

  • be a fit and proper person to be a listing sponsor;
  • have an adequate financial position, in the opinion of the Exchange;
  • have adequate directors and officers insurance;
  • have adequate errors and omissions insurance;
  • have an independent auditor to audit its financial accounts annually;
  • possess sufficient knowledge, skill and experience in public offerings of securities products or listing on securities exchanges; and
  • employ or contract for professional staff who are suitably qualified to perform the functions performed by a listing sponsor.

Please note: Listing Sponsors are not required to be licensed with the Financial Services Commission (FSC).

In assessing whether an applicant,  including its directors, officers and substantial shareholders holding more than 10% of the equity, is a fit and proper person, the Exchange shall consider whether the applicant:

  • is of sound reputation and character;
  • is a member in good standing of any professional association, securities exchange, self-regulatory organization or similar body that the applicant is or was a member of;
  • has ever been found in violation of any law, rule, regulation or code of conduct that it is or has been subject to; and
  • has the ability to effectively perform the responsibilities of a listing sponsor under the ISM rules.

 

Registration Documents


Listing Sponsor Approval

An applicant for approval as a Listing Sponsor on the ISM must file a completed “Application Form for Approval as a Listing Sponsor” with the Barbados Stock Exchange.

This form can be found under Appendix 6 A of the Definitive Guide to Being a Listing Sponsor on the International Securities Market.

 

Listing Sponsor’s Review and Recommendation

Upon the completion of due diligence for a prospective listing by an Issuer, a Listing Sponsor must submit a completed “Listing Sponsor’s Review and Recommendation Declaration Form” with the Barbados Stock Exchange.

This form can be found under Appendix 6 B of the Definitive Guide to Being a Listing Sponsor on the International Securities Market.

 

Quick Links