The ECM Deals Committee

Below is an overview of what the ECM Deals Committee is.

What is the ECM Deals Committee?

The Equity Capital Markets (ECM) Deals Committee assesses the financial and business merits of any proposed New Equity Issue to determine whether the bank will become involved in such New Equity Issue. Except in the limited circumstances described below most banks will not commit to any New Equity Issue without obtaining approval from the ECM Deals Committee.

 

ECM approval

In determining whether a bank will participate in a New Equity Issue, the ECM Deals Committee will consider the financial and business merits of the transaction, the related underwriting risk and the impact of the transaction on the bank’s franchise. To obtain approval from the ECM Deals Committee for a New Equity Issue, the Investment Banking Team will prepare and submit an ECM Deals Committee Memorandum to the members of the ECM Deals Committee for their consideration.

 

ECM deals committee meetings

The ECM Deals Committee meeting typically requires participation by the Head of Equity Capital Markets, a senior representative of Equity Sales and Trading and a senior representative from Investment Banking who is a member of the relevant issuer’s industry group. In addition, if a representative of Research participates in the ECM Deals Committee meeting, a representative of the Legal Department should also attend the meeting.

For each New Equity Issue, Equity Capital Markets will create and maintain a file containing:

  • A copy of the ECM Deals Committee Memorandum;
  • A list of the participants who attended the ECM Deals Committee meeting; and
  • The ECM Deals Committee’s decision as to whether to participate in the New Equity Issue and, if the decision is to proceed with the New Equity Issue, a description of any conditions imposed by the ECM Deals Committee.