Participants in the wholesale financial markets in London include large public companies as well as financial services companies. Companies have an interest in the efficient operating of those markets.
In looking at contracts applicable in those markets it is important to recognise the distinction between companies operating in these markets as wholesale counterparties and retail counterparties - which may include small companies.
We believe that it is essential that wholesale financial markets are excluded from the reasonableness tests discussed in the consultation/discussion paper in order to avoid uncertainties which would destroy those markets. Counter-parties cannot deal with each other in circumstances of contractual undertainty.
We have seen Lord Browne-Wilkinson's letter dated 20th June 2003 to Sir Roger Toulson on behalf of the Financial Markets Law Committee. We would like to support his remarks.
We have recently commented to the Law Commission on the issue of trusteeships involved in the raising of corporate finance, following CP 171 on Trustee Exemptions. A copy of our comments is available under Loan Documentation at www.treasurers.org
In so far as any change on unfair contract terms generally may otherwise apply in the corporate finance field, including to what we have called "corporate finance trusteeships" we believe a complete exclusion should be provided.
