Iosco warns of regulatory action over DCM mandate pressure

By Jasper Cox
23 Sep 2020

Banks may be using their lending relationships with companies to press them into granting bond mandates, the International Organisation of Securities Commissions has warned. This follows the UK Financial Conduct Authority's remarks about similar pressure for equity mandates in April.

Iosco said one of its members had "indicated that it had received reports that certain lending banks in their jurisdiction had pressured their corporate clients in order to be awarded future equity or debt mandates".

These mandates may be "in name only" where no functional service is provided, ...

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