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LAST UPDATE:
Comments to SEC on Analyst Codification Filing Re: File Nos. SR-NYSE-2006-77 and SR-NASD-2006-112; Proposed Changes Relating to NYSE Rule 472 and NASD Rule 2711 - pdf, November 14
BACKGROUND
Over the past year, the press, Congress, our regulators, and, most recently, the New York state attorney general have raised questions about research analysts. SIA has worked extensively to respond to these concerns.
In June 2001, the industry formally adopted Best Practices For Research. Building on our Best Practices, in May 2002, the Securities and Exchange Commission approved rules proposed by the self-regulatory organizations to increase disclosure obligations and strengthen regulatory oversight of research activities. An analysis of these new rules can be found here.
On April 28, 2003, federal and state regulators announced a settlement of enforcement actions brought against 10 major broker-dealers based on undisclosed conflicts and biased reports from certain of their research analysts. The settlement included extensive regulatory undertakings by these firms. A summary of the settlement can be found here. The undertakings can be found here.
Other SIA statements on this issue and related documents can be found here.
