Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

FINRA's concept proposal on fixed‐income research reports

FINRA's concept proposal on fixed‐income research reports Purpose – The purpose of the paper is to explain Financial Industry Regulatory Authority (“FINRA”) Regulatory Notice 11 11, which requests comment on a concept proposal to further regulate fixed income research reports, including through both substantive regulation and additional disclosure requirements. Design/methodology/approach – The paper explains the background, including the application of FINRA's current research rules to only equity securities; definitions, including FINRA's proposed definition of a “debt security” as other than an “equity security,” a “treasury security”, of a municipal security; proposed standard and requirements, including most of the provisions of NASD Rule 2711; the institutional investor exemption, including an opt‐out provision; both permitted and prohibited communication between fixed‐income research analysts and fixed‐income sales and trading personnel; and the likely impact of the concept proposal on firms and investors. Findings – The proposed rule extends regulatory requirements to fixed‐income research that are similar to those applicable to equity research, while subjecting research distributed solely to institutional investors to a more general “health warning”. Practical implications – The proposed rule will likely precipitate cultural and business shifts at firms that both provide debt research services and may encourage a shift towards research disseminated solely to institutional investors. Originality/value – The paper presents practical guidance from experienced financial services lawyers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Investment Compliance Emerald Publishing

FINRA's concept proposal on fixed‐income research reports

Download PDF
5 pages

Loading next page...
 
/lp/emerald-publishing/finra-s-concept-proposal-on-fixed-income-research-reports-ZZm9r2B31l

References

References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.

Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1528-5812
DOI
10.1108/15285811111172295
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of the paper is to explain Financial Industry Regulatory Authority (“FINRA”) Regulatory Notice 11 11, which requests comment on a concept proposal to further regulate fixed income research reports, including through both substantive regulation and additional disclosure requirements. Design/methodology/approach – The paper explains the background, including the application of FINRA's current research rules to only equity securities; definitions, including FINRA's proposed definition of a “debt security” as other than an “equity security,” a “treasury security”, of a municipal security; proposed standard and requirements, including most of the provisions of NASD Rule 2711; the institutional investor exemption, including an opt‐out provision; both permitted and prohibited communication between fixed‐income research analysts and fixed‐income sales and trading personnel; and the likely impact of the concept proposal on firms and investors. Findings – The proposed rule extends regulatory requirements to fixed‐income research that are similar to those applicable to equity research, while subjecting research distributed solely to institutional investors to a more general “health warning”. Practical implications – The proposed rule will likely precipitate cultural and business shifts at firms that both provide debt research services and may encourage a shift towards research disseminated solely to institutional investors. Originality/value – The paper presents practical guidance from experienced financial services lawyers.

Journal

Journal of Investment Compliance – Emerald Publishing

Published: Sep 13, 2011

Keywords: Fixed income securities; Investment research; Securities regulation; Disclosure; Debts

There are no references for this article.