Commenting on the publication today of the FCA’s corporate and investment banking study and a consultation paper on the proposed prohibition of certain contractual clauses in engagement letters, Simon Lewis, Chief Executive of the Association for Financial Markets in Europe (AFME), said:

“We welcome the completion of the market study and note that the final report confirms the interim report’s general conclusion about the current provision of capital markets services.

"We also note that in the final report the FCA is only proposing specific measures in relation to league table presentation and the prohibition of certain clauses in engagement letters.”

With respect to those specific areas which the FCA considers need improvement, AFME will work with the FCA and its members to find solutions to the issues raised and notes with approval the FCA’s decision not to publish rules on league table presentations.

In particular, AFME will:

• continue to contribute to the IPO reform process which is currently underway;
• play a coordinating role in creating industry guidance on the use of league tables in client presentations;
• participate in the consultation published today, whilst maintaining the view that any prohibition of the type proposed should be limited

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