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To: scion who wrote (4395)	3/3/2003 10:46:42 AM
From: scion	Respond to of 12465

Regulation Analyst Certification; Final Rule SECURITIES AND EXCHANGE COMMISSION 17 CFR PART 242 [Release Nos. 33-8193; 34-47384; File No. S7-30-02] RIN 3235-AI60 Regulation Analyst Certification AGENCY: Securities and Exchange Commission. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Securities and Exchange Commission (``Commission'' ``SEC'' or ``we'') is adopting new Regulation Analyst Certification (``Regulation AC''). Regulation AC requires that brokers, dealers, and certain persons associated with a broker or dealer include in research reports certifications by the research analyst that the views expressed in the report accurately reflect his or her personal views, and disclose whether or not the analyst received compensation or other payments in connection with his or her specific recommendations or views. Broker-dealers would also be required to obtain periodic certifications by research analysts in connection with the analyst's public appearances. By requiring these certifications and disclosures, Regulation AC should promote the integrity of research reports and investor confidence in those reports. EFFECTIVE DATE: April 14, 2003. FOR FURTHER INFORMATION CONTACT: James Brigagliano, Thomas Eidt, or Racquel Russell in the Office of Risk Management and Control, Division of Market Regulation, at (202) 942-0772. SUPPLEMENTARY INFORMATION: We are adopting new Regulation Analyst Certification \1\ under the Securities Act of 1933 (``Securities Act'') and the Securities Exchange Act of 1934 (``Exchange Act''). --------------------------------------------------------------------------- \1\ 17 CFR 242.500 through 505. --------------------------------------------------------------------------- I. Introduction and Summary of Regulation Analyst Certification During 1999, the Commission and Congress began to closely examine research analysts' conflicts of interest. We were particularly concerned that many investors who rely on analysts' recommendations may not know, among other things, that favorable research coverage could be used to market the investment banking services provided by an analyst's firm, and that an analyst's compensation may be based significantly on generating investment banking business. Moreover, news reports stated that some analysts had issued reports that did not reflect their true beliefs and communicated to institutional investors views that differed materially from those expressed in their research reports.\2\ Regulation AC, together with other efforts, is intended to address these issues.\3\ On May 10, 2002, we approved rule changes filed by the NYSE and NASD governing analyst conflicts of interest.\4\ On December 31, 2002, we noticed for comment a second set of proposed rules filed by the NYSE and NASD to further address research analyst conflicts of interest.\5\ These self-regulatory organization rules are part of an ongoing process on our part and that of the NYSE and NASD to address conflicts of interest affecting the integrity and objectivity of research by securities firms. Regulation AC is intended to complement other rules governing conflicts of interest disclosure by research analysts, including NYSE Rule 472, NASD Rule 2711, and the anti-fraud provisions of the federal securities law. --------------------------------------------------------------------------- a257.g.akamaitech.net