Research Analysts and Investment Banking Business

A FINRA member broker-dealer may not offer favorable research, a specific rating, or a specific price target for a security. Additionally, a broker-dealer is prohibited from changing research, a rating, or a price target as an inducement for receiving investment banking business.

A broker-dealer is also required to establish information barriers between its investment banking and research departments to prevent the spread of material, non-public information. These barriers will serve to protect the independence of the research analyst so that investors receive honest, unbiased research, which is untainted by conflicts of interest.

This module will follow a case study of an investment banking firm to observe the FINRA rules that have been violated.