Related provisions for COBS 12.3.1
1 - 2 of 2 items.
This section applies to a firm which produces, or arranges for the
production of, investment research that
is intended or likely to be subsequently disseminated to clients of
the firm or to the public, under
its own responsibility or that of a member of its group. [Note: article 25(1) of the MiFID
implementing Directive]
A firm must
ensure the implementation of all of the measures for managing conflicts of
interest in SYSC 10.1.11 R in relation to the financial
analysts involved in the production of investment
research and other relevant
persons whose responsibilities or business interests may conflict
with the interests of the persons to
whom investment research is
disseminated. [Note: article 25 (1) of the MiFID
implementing Directive]
Persons whose
responsibilities or business interests may reasonably be considered to conflict
with the interests of the persons to
whom investment research is
disseminated include corporate finance personnel and persons involved
in sales and trading on behalf of clients or
the firm. [Note: recital 30 of the MiFID
implementing Directive]
A firm must
have in place arrangements designed to ensure that the following conditions
are satisfied:(1) if a financial
analyst or other relevant person has
knowledge of the likely timing or content of investment
research which is not publicly available or available to clients and cannot readily be inferred from
information that is so available, that financial
analyst or other relevant person must
not undertake personal transactions
or trade on behalf of any other person,
including
For the purposes of COBS 12.2.5 R (2):(1) current recommendations should
be considered to be those recommendations contained in investment
research which have not been withdrawn and which have not lapsed;
and[Note: recital
34 of the MiFID implementing Directive](2) exceptional circumstances in which financial analysts and other relevant persons may, with prior written
approval, undertake personal transactions
in financial instruments to
which investment research relates
should
A financial
analyst should not become involved in activities other than
the preparation of investment research where
such involvement is inconsistent with the maintenance of the financial analysts objectivity. The following
should ordinarily be considered as inconsistent with the maintenance of a financial analyst's objectivity:(1) participating in investment banking
activities such as corporate finance business and underwriting; or(2) participating in 'pitches' for
new business
A firm which
disseminates investment research produced
by another person to the public
or to clients is exempt from
complying with the requirements in COBS 12.2.3 R and COBS 12.2.5 R if
the following criteria are met:(1) the person that
produces the investment research is
not a member of the group to
which the firm belongs;(2) the firm does
not substantially alter the recommendations within the investment
research;(3) the firm does
not present the investment research as
having
A firm which
produces or disseminates non-independent
research must ensure that it:(1) is clearly identified as a marketing
communication; and(2) contains a clear and prominent
statement that (or, in the case of an oral recommendation, to the effect that)
it:(a) has not been prepared in accordance
with legal requirements designed to promote the independence of investment research; and(b) is not subject to any prohibition
on dealing ahead of the dissemination of investment
research.