The report identified two pieces of work that the TC proposed to take forward, a survey of the complexity and leverage of capital structures employed in leveraged buyout transactions, and the analysis of conflicts of interest.
The report identified two pieces of work that the TC proposed to take forward. These are a survey of the complexity and leverage of capital structures employed in leveraged buyout transactions, and the analysis of conflicts of interest which arise during the course of private equity business.
Acknowledging the work of other institutions the IOSCO Technical Committee will ask the Joint Forum to consider the feasibility of a survey of leveraged buyout activity across member jurisdictions.
Conflicts of interest arising within securities issuance have been comprehensively covered within recent work by SC3 and therefore further work is not proposed in this area. However, the report does recommend further work to analyse the mitigation of potential conflicts of interest which arise during the process of public-to-private, and private-to-public transactions.
On Transparency and Market Abuse the Committee does not consider it relevant to mandate further specific work from a private equity perspective.
In view of the comments received during the consultation the Committee does not believe changes are merited to the original report.
Responding to several concerns made to clearly distinguish between the activities of private equity and hedge funds the Committee acknowledges these concerns considers and has focused this report solely on the activity of participants in private equity markets. It will focus solely on the identification of regulatory issues and will therefore not reflect on the potential benefits to capital market participants.
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