NASD And NYSE Adopt New Rules On Analyst Recommendations Of Securities
- Topics:
- Securities litigation
- Tags:
- Akin Gump Strauss Hauer & Feld,
- Finance,
- Financial Services,
- Investment,
- Investment Banking,
- NASD,
- New York Stock Exchange,
- Research Analyst,
- Security
- Source:
- Akin Gump Strauss Hauer & Feld
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Overview: In response to growing concerns about potential conflicts of interest presented by analyst recommendations of securities in research reports and public appearances, both the NASD and the NYSE have adopted new rules that are designed to improve the quality and objectivity of research and to broaden the disclosure obligations applicable to securities recommendations. These rules include: restrictions on investment banking department relationship with research department, promises of favorable research, research analysts’ personal trading, disclosure of members’ or research analysts’ financial interests, supervisory procedures. The key aspects of the new regulatory framework adopted by the NASD and the NYSE are nearly identical and encompass such areas as communications between the members’ investment banking and research departments, research analysts’ compensation.
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Format: PDF | Size: 71KB | Date: May 2003 | Pages: 5
