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- ICI Comment Letters
ICI Supports Regulation Addressing Potential Analyst Conflicts of Interest
Washington, DC, September 23, 2002 - A recent Institute comment letter expresses support for the approach taken by the SEC on Regulation Analyst Certification (Regulation AC), which is intended to address conflicts of interest faced by research analysts and their firms. Specifically, the Institute supports the regulation’s provision that the term “research analyst” would not include an investment adviser, such as a mutual fund portfolio manager, who is not principally responsible for preparing research reports.
Regulation AC, part of an initiative to address conflicts of interest affecting research issued by securities firms, is intended to complement other rules governing conflicts of interest, including rules recently adopted by the NYSE and the NASD. In April, the Institute commented on the rules proposed by the two exchanges, stating that recommendations made by sellside analysts differ substantially from statements made by mutual fund portfolio managers, and supporting the proposal to exclude mutual fund portfolio managers from the rule’s definition of a research analyst.