The Securities Industry Association (SIA) today commended the Securities and Exchange Commission (SEC) for its latest effort to improve the quality and integrity of research reports, calling the regulation approved today a “prudent, thoughtful” measure in building investors’ trust and confidence.
“Requiring analysts to certify that the views they express in their research reports are truly what they believe will give investors more confidence in the analysis that securities firms provide to clients,” says Stuart J. Kaswell, SIA’s general counsel and senior vice president.
In its comment letter, SIA supported the proposal and offered suggestions to improve the regulation’s effectiveness.
“‘This rule, combined with comprehensive regulations adopted and proposed by the National Association of Securities Dealers and the New York Stock Exchange, and additional steps required by the Sarbanes-Oxley Act, will strengthen public confidence in the objectivity of research,” Kaswell added.