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December 18, 2003 at 07:00 PM
NU Online News Service, Dec. 18, 2003, 4:28 p.m. EST – The Bond Market Association, New York, is seeking public comments on a draft of principles it has developed to ensure the independence of fixed-income product research in the United States and Europe.[@@]
Members of the association, which represents companies on both sides of the Atlantic, have spent a year developing the guidelines. The association has posted the draft at //www.bondmarkets.com/market/research_principles.pdf
The deadline for comments is Feb. 17, 2004. The association hopes to make final recommendations by March 1, 2004.
The association has come up with 10 basic principles:
– Firms should promote the integrity of fixed-income research and the ability of fixed-income research analysts to express their own independent views by establishing prohibitions on promising favorable fixed-income research and on retaliation against research analysts for research that may adversely affect a firm’s investment banking or sales and trading interests, and by ensuring decisions regarding fixed-income research coverage are made by research department personnel.
- Supervisory and management structures should insulate fixed-income research analysts from review, pressure and control by investment banking personnel, including reporting line structures and research analyst performance evaluations, maintaining physical separation where appropriate.
- Firms should take measures to prevent inappropriate influence by non-research department personnel and issuers over the content of fixed-income research reports and the timing of their publication.
