The Bylaws of the LSTA set forth the framework for the governance, operation, and management of the Association. The LSTA has a three tiered membership structure (full membership, associate membership, and affiliate membership), and the bylaws define the rights and privileges of each of those classes of members. Only an officer, partner, principal or employee of a full member may seek election to the LSTA’s Board of Directors. The Bylaws also describe the dues structure, the annual meeting and annual report requirements, and set forth the structure, powers, and rules regarding the election of the LSTA’s Board of Directors. Finally, they describe the role of the LSTA’s Officers -- the Chair, Vice-Chair, Secretary, and Treasurer.
The purpose of the LSTA’s Code of Conduct is to promote integrity, fairness, efficiency, and liquidity in the syndicated loan market. The Code is intended to provide guidance to banks, broker dealers, and institutional investors that regularly purchase, sell, deal in, broker, or trade debt and the proceeds thereof in the loan market and establishes general standards of trading conduct that are applicable to all loan market participants in connection with all loan market activities. Although compliance with the Code is voluntary, all loan market participants are encouraged to understand and to comply with, and to ensure that their employees and agents understand and comply with, the principles of the Code.
From time to time the LSTA may promulgate additional guidance relating to various topics and issues pertinent to the loan market. To date, the LSTA has published two pieces providing such additional guidance. In 2008, the LSTA published a revised “Confidential Information Supplement” which addresses policies and procedures relating to the use and disclosure of material confidential information in connection with transactions in the loan market. In 2006, the LSTA published the Statement of Principles for the Communication and Use of Confidential Information by Loan Market Participants (“MNPI Principles”). The MNPI Principles outline broad guidelines for the receipt, use and distribution by and to loan market participants of confidential information that is generally available in the loan market and that may at times include material non-public information.