A sponsoring license holder, also known as a sponsoring entity, is a financial institution or other organization that holds a license or approval from a regulatory agency to provide certain financial products or services. The sponsoring license holder is responsible for ensuring that the products or services they offer comply with all relevant laws and regulations. This can include maintaining proper documentation, reporting requirements, and other compliance obligations.
As a sponsoring license holder, the organization may also provide support to other organizations that are seeking to obtain licenses or approvals to offer financial products or services. This can include helping to prepare and submit regulatory filings, coordinating with regulatory agencies, and providing other types of assistance as needed. Sponsoring license holders may also be responsible for overseeing the activities of the organizations they sponsor, to ensure that they are in compliance with relevant laws and regulations.
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This page was last updated on May 29, 2023.
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