Security Research: Additional Actions Could Improve Regulatory Oversight of Analysis Conflicts of Interest

Broker-dealers may provide a range of financial services to clients, including corporations, financial institutions, governments, and individuals. A full-service broker-dealer (or a related subsidiary or affiliate) may employ (1) investment bankers to assist clients with raising capital through underwritings and private placements of equity and debt securities and by offering advisory services on mergers, acquisitions, and restructurings; (2) investment advisers who provide investment advisory and financial planning services to clients; (3) brokers who facilitate client transactions in fixed-income, equity, currency, and commodity products; and (4) securities research analysts who provide equity and fixed-income research services.