Chapter 2

Due Diligence Guidelines –

General Principles

8. The Desirability of Direct Third Party Confirmations

To the extent it is appropriate and practicable, it is expected that a sponsor will seek the direct confirmation of information from parties with which the issuer has an important relationship: for example, major suppliers, customers, licensors and bankers. It is accepted that such parties have no obligation to cooperate with the due diligence and their participation is voluntary. It is also acknowledged that certain third parties, such as the listing applicant’s bankers or joint venture partners, may be prevented by privacy and/or confidentiality requirements from contributing fully to the conduct of due diligence. The sponsor should seek to address any such issues through confidentiality arrangements to the extent that these are appropriate and practicable. If they are not, the sponsor may consider alternative methods of corroborating the relevant information or assess the materiality of not obtaining confirmation of such information to the veracity of the due diligence as a whole.


HKCFEF Limited and the contributing law firms, accountants and sponsors are not offering these due diligence guidelines as legal, financial or professional advice or services and they should not be relied upon as such. These due diligence guidelines should not be used as a sole basis for any decision, action or inaction and are not meant to serve as a substitute for the advice of qualified professionals. See here for the full terms and conditions.


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