NASD Weighs in on Analysts' Conflicts
Investment Dealers Digest (07/09/01) Vol. 35, No. 27 p.4; Lugo, Denise
The National Association of Securities Dealers (NSAD) has
proposed that Wall Street analysts more prominently disclose ownership
in companies they cover, including making such disclosures during TV
interviews and other public appearances. Firms would also have to offer
more visible disclosure of their investment-banking relationships. The
proposal, subject to Securities and Exchange Commission approval, is the
latest effort to address the conflicts of interests of analysts, an
issue that has gained momentum recently due to highly touted tech stocks
crashing. Congress has recently held meetings regarding the issue, and
the Securities Industry Association unveiled a set of so-called best
practices for Wall Street firms to follow.