A research report is a document prepared by an analyst or strategist who is a part of the investment research team in a stock brokerage or investment bank. Research reports generally, but not always, have actionable recommendations such as investment ideas that investors can act upon.
What is FINRA rule 2241?
FINRA Rule 2241 maintains the current disclosure requirements for research reports, with a few changes. The rule: Adds a requirement that a member establish, maintain and enforce written policies and procedures reasonably designed to ensure that purported facts in its research reports are based on reliable information.
Who must approve the compensation of a research analyst?
[NASD Rule 2711(d)(2)] FINRA members must establish, maintain and enforce policies and procedures that require that the compensation of a research analyst who is primarily responsible for preparation of the substance of a research report be reviewed and approved at least annually by a committee that reports to a …
What constitutes a research report?
Research reports are recorded data prepared by researchers or statisticians after analyzing information gathered by conducting organized research, typically in the form of surveys or qualitative methods. Ideal research reports are extremely accurate in the offered information with a clear objective and conclusion.
What is debt research?
(3) “Debt research report” means any written (including electronic) communication that includes an analysis of a debt security or an issuer of a debt security and that provides information reasonably sufficient upon which to base an investment decision, excluding communications that solely constitute an equity research …
What are FINRA’s equity and debt research analyst and research report rules?
The aim of FINRA’s equity and debt research analyst and research report rules is to foster objectivity and transparency in research reports and public appearances and provide investors with more reliable and useful information to make investment decisions.
What is finfinra rule 2241?
FINRA Rule 2241- Research Analysts and Research Reports This rule governs conflicts of interest in connection with the publication of equity research reports and public appearances by research analysts. The rule requires firms to establish and implement policies and procedures to identify and manage research-related conflicts of interest.
What can a FINRA registered representative do?
Research Analysts and Research Reports | FINRA.org Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks. Firm compliance professionals can access filings and requests, run reports and submit support tickets.
What is a research report?
(8) “Research report” means a written or electronic communication which includes an analysis of equity securities of individual companies or industries, and which provides information reasonably sufficient upon which to base an investment decision and includes a recommendation.
