Author： C. Hensley Dennis W. Strouse Jeffrey
Publisher： Emerald Group Publishing Ltd
ISSN： 1528-5812
Source： Journal of Investment Compliance, Vol.3, Iss.2, 2002-01, pp. : 13-21
Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.
Abstract
On May 10, 2002, the Securities and Exchange Commission (the â–œSECâ–?) approved certain rule changes filed by the National Association of Securities Dealers, Inc. (the â–œNASDâ–?) and the New York Stock Exchange, Inc. (the â–œNYSEâ–?) relating to research analystsâ–™ perceived conflicts of interest. In proposing such rule changes, the SROs noted that these new rules were intended â–œto improve the objectivity of research and provide investors with more useful and reliable information when making investment decisionsâ–? and â–œto reinforce the integrity of the process and help rebuild investorsâ–™ faith in research and in the equities market as a wholeâ–?. To that end, NASD Rule 2711 and NYSE Rule 472 (the â–œrulesâ–?) restrict and prohibit certain activities of firms and their research analysts. This article sets forth a summary of the rules and the guidance relating thereto. It also provides a brief description of the recently proposed Regulation AC, which effectively will impose additional requirements on firms and their analysts. By integrating these sources into one, this article intends to survey the existing landscape as it relates to the rules governing research analysts, and, more important, to serve as a guidepost around which this landscape continues to evolve.
Related content
Access to resources
Recommend
