Analysts moonlighting for newspapers will have to declare names and interests
A colourful but controversial feature of the local investment scene - financial analysts moonlighting as anonymous tipster columnists - will go the way of paper-based trading under conflict-of-interest regulations to be introduced by the Securities and Futures Commission.
The changes, outlined in an SFC consultation paper released yesterday, will require analysts writing in the local media to use their real names and reveal whether or not they hold the stocks they are recommending. Similar disclosures will be required with regard to investment banks and brokerages' own research products.
The guidelines - scheduled to take effect from April next year - will also enforce 'blackout periods', during which analysts will not be allowed to trade stocks they have issued research reports on.
Other amendments will effectively ban analysts from helping their firms win deals by participating in roadshows and sales pitches.
'When you are issued a [analyst] licence, it represents a qualification,' SFC executive director Alexa Lam said yesterday. 'It means you're given certain information based on which you conduct your activities. So whenever you issue reports or commentaries, you have the responsibility to be as transparent as possible.