TV Analysts Face New Disclosure Rules
biz.yahoo.com
Friday July 5, 1:08 pm Eastern Time
Reuters Business Report
TV Analysts Face New Disclosure Rules
NEW YORK (Reuters) - Securities analysts appearing on television and radio will have to disclose any financial interest in the stocks on which they comment from Tuesday, July 9, when new regulations take effect.
The rules were previously announced by the U.S. Securities and Exchange Commission on May 8, with a 60-day grace period.
They are part of a broad thrust by regulators to curb the potential for abuses such as those at Merrill Lynch (NYSE:MER - News) in recent years where Internet analysts publicly touted stocks they had slammed privately as "junk."
The broad rules are designed to limit how and when analysts issue opinions on stocks, restrict their personal investing activities and force banks to disclose more about their ties to companies they research and those of their analysts.
Money managers and industry financial analysts are widely used as guest commentators on business talk shows, but at least one broadcaster downplayed the impact of the new rules.
New Jersey-based CNBC has had guidelines for financial professionals appearing on the cable business network for several years, according to Patti Domm, a senior news editor at the station.
Among other requirements, business professionals are asked to ensure their personal financial activity is consistent with the opinions expressed on CNBC, that their general financial position and that of their firm is disclosed, and any investment banking relationship between the firm and the relevant company is noted.
A guest's interest in a stock may be disclosed by either an on-screen graphic or stated by the anchor, she said.
"Now it's a rule, we'll make even more effort to graphically represent (the guest's interest) or disclose it during the interview," Domm told Reuters.
U.S. cable network CNNfn, and The British Broadcasting Corp., based in London, were not immediately available to comment. |
