Primary bond issues – Conflicts of interest

In late 2019, the International Organization of Securities Commissions (IOSCO) held a consultation on proposed guidance covering conflicts of interest identified in primary bond issues. The IOSCO report proposed eight measures, partly modelled on provisions in Europe’s MiFID 2 framework.

In its response (AMAFI / 20-10), AMAFI indicated broad support for the proposed guidance, noting that the measures were generally appropriate and posed no real difficulties insofar as they were already incorporated into European regulations. However, AMAFI requested clarification on several aspects, including issues relating to the determination of issue prices, and offered feedback based on the most common practices on the French and European markets. In conclusion, it said that the European legal and regulatory framework did not need to be amended.