The fiduciary standards for institutions and individuals providing investment advice throughout the retail investment and municipal securities markets are currently undergoing significant change. Following on the heels of the issuance of a final Department of Labor (the “DOL”) fiduciary rule is the pending effectiveness of new fiduciary standards for municipal advisors, and the expected release of a proposed uniform fiduciary standard for investment advisers and broker-dealers by the U.S. Securities and Exchange Commission (“SEC”). The election of Donald J. Trump as President of the United States, along with a Republican majority in both the House of Representatives and the Senate, … Read more
In late May, FINRA published a set of Frequently Asked Questions regarding FINRA’s equity research rule,1 which addresses interactions between issuers, research analysts and investment bankers in various stages of the offering process (the “Research FAQs” or the “FAQs”).2
The Research FAQs appear in part designed to provide guidance regarding FINRA’s views in light of recent enforcement actions in which FINRA found certain conduct violative of:
- FINRA’s prohibition on analyst participation in efforts to solicit investment banking business; and,
- FINRA’s prohibition on the offer of favorable research as consideration or inducement for the receipt of investment banking business.