FCA prohibits banks locking in future ECM, DCM and M&A business
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On 27 June 2017 the FCA published policy statement PS17/13, containing final versions of the rules proposed in consultation paper CP16/31. The new rules will ban the use of certain clauses in investment and corporate banking engagement letters and other contracts which restrict a client's choice of future providers of equity or debt capital markets services, or merger and acquisition services.
The new rules will come into force on 3 January 2018.
This note sets out a brief overview of the new requirements and highlights some practical issues arising from the new rules.
