Last week, the SEC proposed amendments from the NASD and NYSE that would revise their research analyst conflict-of-interest rules (NASD Rule 2711 and NYSE Rule 472) that would go further than the terms of the ’03 Wall Street Global Settlement. Specifically, the proposed rules would:
– prohibit a research analyst from participating in road shows and communicating with a customer in the presence of investment banking department personnel or company management about an investment banking
– prohibit investment banking personnel from directing a research analyst to engage in sales or marketing of an investment banking transaction or to engage in communicating with a customer about an investment banking services transaction; and
– require that any written or oral communication by a research analyst with a customer or internal personnel related to an investment banking transaction must be fair, balanced and not misleading.
Transcript for “The Evolution of Due Diligence Practices”
We have posted the transcript for the webcast: “The Evolution of Due Diligence Practices (and Securities Act Liability).”
With the 10-K deadline behind us, I couldn’t resist a little humor. I am not a big Saturday Night Live fan, but the old SNL skit with Will Ferrell and Christopher Walken is one of the funniest I have ever seen! “I got a fever… and the only prescription is more cowbell.”