Don’t waste time on arrangement letters

Author: | Published: 19 Nov 2008

Bankers need to stop battling with auditors over arrangement letters. Such conflicts are a “waste of time” – as are the arrangement letters themselves.

“A huge portion of the debate we have is on the content of arrangement letters. It’s a terrible waste,” said Ernst & Young’s Matthew Sutton at IFLR’s Asia Capital Markets Forum on Wednesday. “I’m not a particular fan of arrangement letters and don’t like the ICMA [International Capital Markets Association] format where the rules of the comfort letter are outlined in an arrangement letter.”

In a session on the perennial...