|
Goals
1. Increase awareness of the financial interests behind investment
research
- Investorside Research is created purely for the purpose of supporting
investment decisions through objective research; while "Company-Side
Research" is created for the primary purpose of selling companies'
securities to investors, a potential financial conflict with investor
interests.
 Close
2. Educate investors how they can promote better research alignment
with their interests
- Inform investors how their assets currently fund and perpetuate
research conflicts.
- Encourage investors and pensioners to seek more transparency and
accountability over how their portfolio commissions are spent on
research and how credit ratings are funded.
Close
3. Promote truth in advertising and fair representation of investment research to investors
- Disclosure of research conflicts alone is insufficient; what's
most important is that research should not be represented or marketed
as objective or independent, if it is not.
- If "research" is oriented toward enhancing investment
banking or promoting trading advantages, it should be so labeled
prominently, like printed advertisements are in the news media
to ensure no confusion.
Close
4. Reduce regulatory and industry barriers to competition
- Ensure regulations and industry practices do not protect and perpetuate
the entrenched dominance of company-side research from Investorside
research competition.
- Enable market forces and competition to meet investor demand for
objective research, while remaining vigilant to anti-competitive
behavior.
Close
5. Promote "Best Research Payment Practices"
- Un-bundle research from banking and proprietary trading through
more transparency and official separate accounting/reporting of
research, trading and banking, revenues and expenses.
- Ensure payments disclosed as compensation for research services
actually go to research and are not diverted for other services.
Close
|
