Call Made for a Bigger Wall on Street
Source: Wall Street Journal
A Wall Street regulator is pushing to extend conflict-of-interest curbs to include analysts and investment bankers who work in the giant market for debt offerings.
Such controls already exist for Wall Street firms dealing with stocks. But the Financial Industry Regulatory Authority plans to submit by year-end proposed rules for debt, said a spokeswoman. The rules could force firms to build firewalls between investment bankers who pitch debt offerings and research analysts who follow companies issuing the debt.
The rules would require Securities and Exchange Commission approval. An SEC spokesman declined to comment on when, or if, the agency would respond to a request by Finra, the self-regulator of securities firms.
The rules are largely intended to benefit small investors. The proposals suggest that research sent only to pension funds and other large investors wouldn't have to comply with many of the proposed new curbs, including controls on how analysts are supervised and remunerated.
Read more: http://online.wsj.com/article/SB10001424052702303506404577446734182143936.html
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