RMA: All industry members should be present when drafting standard documentation
09 October 2018 Miami
Image: Shutterstock
When forming a consensus on new industry standard documentation, drafters must ensure that all industry participants are at the table, according to speakers at the 35th Risk Management Association Conference on Securities Lending.
The panel, moderated by Colleen Kenney, included Mary Breslin, Alina Casner, Rananda Fergerson, Larry Kornreich and Lisa Stephenson.
One panellist gave the example of her firm, which was unwilling to use standard documentation when the custom agreement currently in use is more beneficial to it. The panellist said that drafters need to ensure that industry standard documentation is beneficial to everybody.
The panel also noted that the documents mean everyone working together with the people that care about the business.
Another panellist agreed that all businesses are different and have specialised needs so the standard documents do not always apply to them. However, another suggested that it doesn’t mean you shouldn’t use the standard document as a benchmark.
Other panellists described the standard document as “sticky and not as nimble to adapting to market changes”. The panel also noted that the creation of multiple versions could lead to a “battle of the forms”.
However, overall the panel agreed that the standard documentation is “really helpful and efficient”. One speaker said that firms can each negotiate provisions to add to industry templates because they are there to build and expand on.
She said: “It’s a starting point with basic terms to go by.”
The panel, moderated by Colleen Kenney, included Mary Breslin, Alina Casner, Rananda Fergerson, Larry Kornreich and Lisa Stephenson.
One panellist gave the example of her firm, which was unwilling to use standard documentation when the custom agreement currently in use is more beneficial to it. The panellist said that drafters need to ensure that industry standard documentation is beneficial to everybody.
The panel also noted that the documents mean everyone working together with the people that care about the business.
Another panellist agreed that all businesses are different and have specialised needs so the standard documents do not always apply to them. However, another suggested that it doesn’t mean you shouldn’t use the standard document as a benchmark.
Other panellists described the standard document as “sticky and not as nimble to adapting to market changes”. The panel also noted that the creation of multiple versions could lead to a “battle of the forms”.
However, overall the panel agreed that the standard documentation is “really helpful and efficient”. One speaker said that firms can each negotiate provisions to add to industry templates because they are there to build and expand on.
She said: “It’s a starting point with basic terms to go by.”
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