Business Client Alert: Analyst Conflicts of Interest
4/12/2002
This alert summarizes the rules proposed by the National Association of Securities Dealers and the New York Stock Exchange relating to research analyst conflicts of interest. The summary combines the fundamental aspects of the material provisions of NASD Proposed Rule 2711 and NYSE Proposed Rule 472, which encompass : (a) restrictions on investment banking department relationships with research department; (b) restrictions on review of a research report by the subject company; (c) prohibition of certain forms of research analyst compensation; (d) prohibition of promise of favorable research; (e) imposition of quiet periods; (f) restrictions on personal trading by research analysts; and (g) disclosure requirements. The client alert also explains the supervisory procedures of these rules.
