Related provisions for LR 8.3.9
1 - 2 of 2 items.
1In identifying conflicts of interest, sponsors should also take into account3 circumstances that could:333(1) 3create a perception in the market that a sponsor may not be able to perform its functions properly; or4(2) 3compromise the ability of a sponsor to fulfil its obligations to the FCA in relation to the provision of a sponsor service.
1If, in relation to a sponsor service3, a sponsor is not reasonably satisfied that its organisational and administrative arrangements will ensure that a conflict of interest will not adversely affect its ability to perform its functions properly under this chapter, it must decline or cease 3to provide the sponsor services3.33
1LR 8.3.11 R recognises that there will be some conflicts of interest that cannot be effectively managed. Providing sponsor services in those cases could adversely affect both a sponsor's ability to perform its functions and market confidence in the sponsor regime. If in doubt about whether a conflict can be effectively managed a sponsor should discuss the issue with the FCA before it decides if it can provide a sponsor service.
8A sponsor or a person applying for approval as a sponsor will not satisfy LR 8.6.5R (3) unless it has in place:(1) clear and effective reporting lines for the provision of sponsor services (including clear and effective management responsibilities);(1A) effective systems and controls which require employees with management responsibilities for the provision of sponsor services to understand and apply the requirements of LR 8; (2) effective systems and controls for the appropriate
4A sponsor will generally be regarded as having appropriate systems and controls for identifying and managing conflicts6 if it has in place effective policies and procedures:(1) to ensure that decisions taken on managing conflicts of interest are taken by appropriately senior staff and on a timely basis;(2) to monitor whether arrangements put in place to manage conflicts are effective; and6(3) to ensure that individuals within the sponsor are appropriately trained to enable them