Market Intermediary Management of Conflicts that Arise in Securities Offerings
30.05.2007
Financial intermediaries like investment banks assume a central role for the functioning of international capital markets. Conflicts of interest during counseling, financing and distribution can endanger the success of an initial public offering. The International Organization of Securities Commissions (IOSCO) has conducted a consultation about how issuers, investors and the market can be protected from dangers arising in connection with conflicts of interest.Scholars from the Hamburg Max Planck Institute for Comparative and International Private Law have published comments on the IOSCO Consultation. They propose a more concise definition of what constitutes a conflict of interest, a concerted application of organizational and disclosure duties within the group of companies of the intermediary, and – in case of grave conflicts – abstaining completely from participation in the offering.
Members of the Working Group: Christoph Kumpan, Patrick C. Leyens
Max Planck Institute, Public Comments on Market Intermediary Management of Conflicts that Arise in Securities Offerings
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