FSA consultation on practice change that will see UKLA Helpdesk only help where the issuer is named
The Financial Services Authority, in chapter 7 of this Consultation Paper issued earlier this week, is consulting on a rule change that will see the UK Listing Authority Helpdesk stop its practice of assisting issuers and advisers on a “no names” basis:
“We recognise that advisors value the flexibility of being able to request technical guidance on this basis. But our view is that doing this raises a number of significant risks, both for the UKLA and for advisors seeking to rely on the guidance provided.
We are often in the position of being asked to provide individual guidance when we are not in a fully informed position on the facts of the case. This is a risk in itself but it also means that when we are formally approached on a named basis, and we can see the whole context of the case, we may have to re-open advice previously given on a much shorter timescale. This does not represent an efficient use of our resources and does not produce a satisfactory outcome for the advisor and the issuer.
Our review of the UKLA helpdesk also showed that a significant number of telephone queries are not technical or they are straightforward enough that they should be capable of being answered without using the helpdesk. Operating and resourcing the UKLA helpdesk has a direct and significant effect on our ability to carry out our other core functions. When allocating our resources we have to be aware of our statutory duty to ensure that we use our resources in the most efficient and economic way.
We propose to no longer to accept requests for individual guidance which are made on a ‘no names’ basis. This will bring the UKLA practice into line with that of the FSA more generally.
Under our proposals, issuers and their advisors would still be able to make requests for individual guidance in writing, on a named basis, which the UKLA, except in the case of simple queries, would respond to in writing within the current turnaround times. In cases of exceptional urgency, we would be prepared to receive requests orally and would retain a stand-alone telephone line for this purpose. The listing applications telephone line and the administrative queries telephone line would remain available, each with its own separate contact number. Revised contact details will be confirmed in due course
Our view is that this proposed model removes the risk for both the UKLA and the issuersand advisors of providing advice on a ‘no names’ basis. We believe that submitting requests for individual guidance in writing would result in their being ‘reasonable requests’ for guidance and that the UKLA would be less likely to be used as the first port of call for technical advice. Issuers and their advisors would, in turn, benefit from receiving guidance from the UKLA which is binding and in written form.”
The consultation closes on 6 May 2012 and UKLA practice can be expected to change shortly after (if not in anticipation of) that date.
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