An ad hoc European forum discussing legal issues of distributing retail investment products is stepping closer to a plan to establish best-market practices. The forum is set to meet again next month, and lawyers and derivative sales officials present at previous get-togethers said there has been general agreement on investment banks' reputational concerns when selling complex derivative structures through third-party firms. The next step is to decide what action to take, as a market.
The group first met in November (DW, 11/23) and has attracted interest from top-tier dealers, as well as lawyers and also distributors themselves. "People want to go because there's a strong feeling that something needs to be done," said one sellsider. He expects the forum to eventually come up with some form of market best-practice agreement or document, although it's not yet clear what form it might take. Simon Gleeson, partner at Allen & Overy in London, noted that although there is not yet consensus on what the end result might be, there's a general willingness to keep talking. "The feeling is, now all the major players are involved, we have the momentum to get something done," added another lawyer.
The forum is not officially led by any firm or individual, although it was kick started by Tim Hailes, managing director and associate general counsel at JPMorgan in London. Hailes confirmed a meeting has been penciled in for the second week in May, noting an agenda has not yet been decided.
