That's a wonderful start. I think analysts connected with what the industry calls legitimate houses are on their toes now. If they are stupid enough to continue as before, then they won't last long in the current environment.
Now, what about analyst wanna bees? How about those who operate below the level of those who have been discredited by the national scandals? For example, how about an analyst who issues a negative press release after sharing that with a cadre of shorts? What if the consideration is not cash, but another consideration perhaps hidden from the particular transaction? I suggest that some of the language in there suggests that so long as there is an association, an enterprise, these wannabe analysts may come under scrutiny along with many of the activities of hedge funds as the year goes along.
and to disclose any payments connected to their recommendations. Again, I suggest the words "connected to" would encompass consideration that flows outside of traditional payments such as shares or cash. If the "analyst" gets something of value because of the relationship, then that "analyst" may be subject to the new rules and also allegations of front running along with the enterprise.
Approved unanimously, the new rule also requires analysts to file quarterly reports with their firms certifying the accuracy of their comments about stocks on television, in interviews and during other public appearances. I suggest that this would cover cases where truthful information is intended to mislead by implication that the situation is as it was years ago. After all, if the "analyst" has reason to know that the situation with a company has changed and constantly tries to lead the reader to believe that nothing has changed, then that "analyst" is actually trying to mislead the reader and would be subject to this new rule in my opinion.
Other interesting issues will be What constitutes an analyst, an analysis? How about a post intended to mislead where the poster is connected with a group buying or selling? How about paid touts? How about paid bashers?
'It's a good idea,' said Kramer. ``It's not the beginning or end of this issue, clearly.' |
