SIA Submits Comments to the NASD on Rulemaking Concerning Securities Analyst Objectivity
Published on:
August 30, 2002
The Securities Industry Association (SIA)* provides comments to the National Association of Securities Dealers, Inc. (NASD) on the application of NASD Rule 2711 to small firms regarding securities analyst objectivity, NASD Notice to Members (NTM)02-44. SIA makes two observations about the NTM:
- the NTM does not consider the potential consequences of NASD Rule 2711 for many smaller public companies; and
- if some relief for smaller firms is provided, the most important place to provide such relief would be the requirements that legal and compliance personnel intermediate communications between the research department and the investment banking department, and the requirement that legal and compliance personnel authorize any change in a draft research report after its review by the subject company.
*SIFMA is the product of a merger between the Securities Industry Association (SIA) and The Bond Market Association (TBMA) in 2006.