The International Organisation of Securities Commissions has published final guidance for countries to address potential conflicts of interest and associated conduct risks market intermediaries may face during the debt capital-raising process.
IOSCO’s membership regulates more than 95 per cent of the world’s securities markets in more than 115 jurisdictions. Nigeria is a member.
The guidance sought to address some specific concerns observed by certain regulators during the Coronavirus Disease crisis that may affect the integrity of the capital-raising process.
IOSCO noted that conflicts of interest and associated conduct risks could weaken investors’ confidence and undermine debt capital markets as an effective vehicle for issuers to raise fund.
According to the global regulatory body, the final report on conflicts of interest and associated conduct risks during the debt capital-raising process will help regulators to identify and address the risks.
The report also explored the potential benefits and risks of Blockchain technology in addressing conflicts of interest in the process.
It described the key stages of the process and identified where the role of intermediaries might give rise to conflicts of interest.
The guidance comprises nine measures that address potential issues when issuers are preparing to raise debt finance, including such things as the use of risk management transactions, the quality of information available to investors, and the allocations process.
