The FSC had put out its first iteration of the document in February 2021 after it observed promotional activities and disclosures on various initial public offerings (IPOs) and additional public offerings (APOs) at the time. In the current iteration, the FSC has amended the definition around what is market conditioning, reduced certain restrictions in the pre-FSC registration stage, reduced the period between the publication and opening date of the prospectus plus the reduction of the minimum public pool (non-reserved group of investors) from 60 per cent to 40 per cent for a public offer.

However, the proposed amendment, which has struck a chord with many people, is item 22, which says that there should be no reserved pool for a lead broker(s) or its clients. The previous version of the document stated that this was because the broker would be in possession of insider information. Though an exception has been created if the issuer is a broker or for the broker to participate as a key/strategic partner in a public offer, some persons still don’t agree with the move to block brokers from taking a stake in company in their IPO. In the first exception, the broker could create a pool for its clients, employees and associate persons. Another exception is an issuer reserving shares in lieu of broker fees.

https://www.jamaicaobserver.com/sunday-finance/a-stupid-fsc-rule-brokers-hit-out-at-proposal-to-prevent-them-from-taking-stake-in-companies-they-list_247225