AIMR is proposing voluntary ethical standards to maintain the independence of investment analysts and the integrity of investment research. The Association for Investment Management and Research, Charlottesville, Va., released the seven-page paper in response to concern about conflicts of interest that might compromise equity recommendations, and "the deterioration of investor confidence in the objectivity of sell-side research” that could "harm the reputation of the entire investment profession.”
"It is critical that sell-side firms foster and maintain a corporate culture that fully supports independence and objectivity and protects analysts from undue pressure by their investment-banking colleagues,” the paper said, proposing that investment-banking personnel should have no authority to approve, veto or revise research reports or recommendations and that analyst compensation not be linked "directly to investment-banking assignments.”
AIMR is seeking comments on its proposal by Oct. 10 and intends to make them available on its website.
