A broker settled FINRA charges for distributing research notes to sales and trading personnel, and select customers, in advance of the publication of the official research report.
News & Insights
On July 3, 2023, the SEC's relief for broker-dealers from investment adviser regulation in connection with the provision of research to EU investment managers expired. SEC Commissioner Mark T. Uyeda urged the SEC to engage in a "holistic review of the regulatory framework for investment research."
The House Financial Services Committee approved a bill that would codify expiring SEC no-action relief that (i) excludes broker-dealers who are compensated for research services from the definition of "investment adviser" and (ii) allows broker-dealers to continue accepting payments for research reports in order to comply with international regulations, including MiFID and MiFID II.
FINRA proposed revisions to the content outline for Research Analyst exams (FINRA Series 86/87).
A brokerage firm settled FINRA charges for (i) publishing equity research reports that included inaccurate historical stock information and (ii) failure to accurately disclose its beneficial ownership in stocks as to which it published research, among other securities law violations.