The regulation requires that the sponsors have at least two principals, with at least one in a supervisory role within the transaction team. The document also puts ultimate responsibility for the sponsor’s work on its management team.
Lam explained during a press conference that sponsors play an extremely important role in ensuring the quality of the stock exchange, and that such regulations are key in promoting high standards of corporate governance.
When asked if firms would face difficulties meeting the new regulations, Lam does not believe it is an issue, as long as sponsors are willing to add headcount. “You can’t expect to make the money if you don’t make the investment,” she said.