SAC: Sponsors Forbidden from Illegally Undertaking Projects

The Securities Association of China (SAC) has drafted the 'Code of Conduct for Practicing Sponsor Representatives (Draft for Comments)' (hereinafter referred to as the 'Draft') and is soliciting industry feedback. The Draft prohibits illegal project undertaking. Sponsor representatives must conduct project acquisition activities in a reasonable and proper manner in accordance with laws, regulations, and internal rules, uphold fair competition, and maintain market order. During project acquisition, sponsor representatives and other personnel engaged in sponsorship business shall not disparage peers, make unreasonable price offers, claim familiarity with regulators or other relevant personnel, promise to lower standards for due diligence, information disclosure, or internal control, guarantee submission or registration timelines, promise issuance prices, or sign side agreements.