Lawyers get advice on fund managers

The Financial Law Panel (FLP) has published its advice for City lawyers on the technical problems arising from the agency status of fund managers which affects managers' dealings in the wholesale financial markets.

Its paper, Practice recommendation on fund management and market transactions, suggests draft wording for dealing with the most difficult legal issues. It also stresses the need for "rigorous documentation" in this area.

Colin Bamford, FLP chief executive, said it is for market participants to decide how they wish to allocate technical risks on their contracts.

He added: "When they have decided [on risk allocation], there is a role for lawyers in

ensuring that the agreements reflect the intention clearlyand fully".