The International Organization Of Securities Commissions (IOSCO) is looking into the controversial practice of designated legal counsel in leveraged finance deals, according to people with knowledge of the situation.

The Madrid-based body, which brings together the world’s securities regulators, is including the issue—regarding borrowers, such as private equity firms, deciding which law firms lenders can use for advice on the deals—in its wider review of conduct risks in the leveraged loan and CLO markets, one person said.