Category Archives: Conflicts of Interest
FINRA Fines Citigroup Global Markets $725,000 for Failure to Disclose Conflicts of Interest in Research Reports
The Financial Industry Regulatory Authority (“FINRA”) announced that it has fined Citigroup Global Markets, Inc. $725,000 for failing to disclose certain conflicts of interest in its research reports and research analysts’ public appearances. Citigroup failed to disclose potential conflicts of … Continue reading
SEC moves to limit firms’ bets against clients
The following story appeared on Reuters on September 19, 2011: Financial firms would be restricted from betting against the bundled financial products they create and sell to investors, under a proposal issued by U.S. securities regulators on Monday. The proposal … Continue reading
FINRA Provides Guidance on Prohibition Against Offering Favorable Research to Induce Investment Banking Business
Executive Summary FINRA is reminding member firms of the need for heightened supervision over solicitation and research activities in circumstances where an issuer has communicated an expectation of favorable research as a condition of participating in an offering. A copy … Continue reading
Warning on Firms’ Pressure
The following story appeared in the Wall Street Journal on September 14, 2011: Wall Street’s self-regulator has warned financial firms they are obliged to prove they aren’t caving to pressure from corporate clients to issue favorable stock research in a … Continue reading