The European Leveraged Finance Alliance and the Association for Financial Markets in Europe will end their formal affiliation from 1 July.
ELFA and AFME said the mutual decision was taken after a six-month trial period to enable the two organisations to better represent the interests of their respective members.
Sabrina Fox, executive advisor to ELFA, said the affiliation with AFME has been helpful to allow the group, which represents the interests of investors in high-yield and leveraged finance, to establish itself but presented some conflicts of interest for the two entities.
“The platform they [AFME] provided to us was essential to our success and momentum,” Fox said. “As trade associations we represent different constituencies with unique perspectives. Working together as independent entities will enhance our ability to represent our respective members and to collaborate with each other.”
Fox told PDI that ELFA has found value in working closely with AFME on issues where the positions of investors and brokers overlap, but there were many areas where opinions diverged and the two organisations wanted to approach them in their own way.
ELFA now has 20 members and will look to continue to grow its activities and develop its priorities. It will continue to work informally with AFME and other trade bodies on various policy issues, including joint initiatives to promote high-yield market growth and efficiency.