Research Analyst Conduct

What this video covers

• Why the information barrier is structural, not casual: bankers cannot supervise analysts, analysts cannot report up to banking, and compensation may never be tied to a specific transaction
• How the independent annual compensation committee reviews analyst pay and why investment banking personnel are barred from sitting on it
• The two-part, three-year average test for the limited-investment-banking exemption (10 or fewer deals as manager or co-manager and $5 million or less in gross revenue), and why the insulation duty survives even if both hurdles are met
• Which communications between banking and research are flatly prohibited, including pitches, road shows, and sales or marketing efforts directed at current or prospective customers
• The narrow emerging growth company (EGC) exception that allows analyst attendance at an IPO pitch meeting, and why road-show participation remains prohibited even for EGC offerings
• The quiet-period countdowns (10 calendar days after an IPO for any underwriter or dealer; 3 calendar days after a secondary offering for managers and co-managers only), plus the significant-news exception and the booster-shot prohibition
• The 12-month look-back disclosure for prior manager or co-manager roles, the rating-distribution requirement (firm wide, not industry specific), and the other conflict disclosures required in every research report